California Congresswoman Maxine Waters, a leading voice on financial oversight, is intensifying her campaign against what she calls “crypto corruption” tied to former President Donald Trump’s memecoin ventures. Waters has unveiled a new legislative proposal targeting crypto-related activities by top government officials, right as Trump readies a high-profile dinner linked to his memecoin investors.
The bill, formally named the Stop Trading, Retention, and Unfair Market Payoffs in Crypto Act of 2025—or the Stop TRUMP in Crypto Act—seeks to prevent the president, vice president, members of Congress, and their families from exploiting digital assets for personal gain or influence peddling. Introduced on May 22, this legislation aims to clamp down on potential conflicts of interest and curb what Waters describes as “crypto crime” within the highest levels of government.
Waters specifically referenced Trump and his wife Melania’s launches of personal memecoins earlier this year, as well as his family’s role in creating the stablecoin USD1 via the crypto platform World Liberty Financial. Additionally, she noted Trump’s push to establish a national Bitcoin reserve, alongside his sons’ involvement in Bitcoin mining enterprises. These actions, she argues, open backdoors for wealthy insiders and foreign interests to sway U.S. policy under the guise of cryptocurrency investments.
“Donald Trump is hosting a dinner with top donors of his memecoin, individuals who have enriched his family significantly,” Waters said. She warned that beyond being a simple scam targeting retail investors, the memecoin scheme could be “a dangerous backdoor for selling influence over American policies to the highest foreign bidder.”
The timing of Waters’ bill coincides with Trump’s planned gathering at his Trump National Golf Club near Washington, DC, where he expects up to 220 guests linked to the memecoin to attend. This exclusive event, shrouded in secrecy, has sparked protests and criticism from consumer advocacy groups and political figures alike. Senators Chris Murphy and Elizabeth Warren are slated to join press conferences with groups like Public Citizen, voicing concerns about the intersection of crypto and political influence.
While the full list of attendees remains largely confidential, media reports and social media posts have shed light on some participants. Notable names include Justin Sun, founder of Tron; Oh Sangrok, co-CEO of Hyperithm; Vincent Liu, CIO of Kronos Research; and Kain Warwick, founder of Synthetix. Sun even shared images on social media showing access to parts of the White House complex, raising further questions about the event’s proximity to government power.
The White House Press Secretary, Karoline Leavitt, clarified that Trump’s attendance is a private affair and denied the event would be held at the White House itself, despite earlier memecoin promotional materials hinting at a government building tour for top token holders.
The TRUMP memecoin, which launched on January 17, has drawn bipartisan scrutiny from lawmakers and industry observers. Even some who generally support Trump’s policies have criticized the token, warning of the risks involved. A May 20 editorial by The Wall Street Journal called for transparency about dinner guests and urged Trump to cancel the gala to avoid further damage to public trust.
Concerns are heightened by the fact that two organizations closely affiliated with Trump control nearly 80% of the memecoin’s total supply, raising alarms about the potential for a “rug pull” or sudden devaluation that could harm smaller investors.
Despite the criticism, the memecoin’s price has seen recent gains, rising over 11% in the last day to $15.76, signaling persistent demand among speculators.
As Waters and other lawmakers push for stricter crypto oversight, the intersection of digital assets, political influence, and personal gain continues to be a contentious battleground—one that could reshape how lawmakers approach crypto regulation in the years to come.
