President Trump is under fire for promoting his memecoin, $TRUMP, which involves a dinner event for top token holders. Democratic senators call for an ethics investigation, citing potential legal issues. Meanwhile, defensive moves by the SEC regarding Binance signify deeper connections to Trump’s crypto ventures, and ETF partnerships are forming as the cryptocurrency landscape remains embroiled in ethical concerns.
The latest developments regarding President Donald Trump’s ventures into the cryptocurrency world continue to draw scrutiny. Recently, it was reported that Trump is profiting significantly from his digital assets, particularly highlighting a $TRUMP meme coin. Democratic Senators Adam Schiff and Elizabeth Warren urged an ethics inquiry into Trump’s promotional campaign for this memecoin, which includes a private dinner event in D.C. for top holders scheduled for May 22.
This dinner announcement, featured on Trump’s official cryptocurrency platform, promises attendees “a chance to hear from President Trump about the future of Crypto.” Privileged access is offered to the top-25 holders of $TRUMP tokens, enhancing the allure. Additionally, the website has launched a leaderboard, encouraging users to buy and hold more tokens to increase their ranking and eligibility for exclusive events with the former president.
The exclusive dinner at Trump’s Private Club in Georgetown comes shortly after a significant unlocking of 40 million $TRUMP tokens, bringing total circulation to 240 million. With a cap of one billion minted tokens, 80% are held by Trump’s team, including his family. Unsurprisingly, such token unlocks typically lead to price drops, but in this case, the announcement pushed the $TRUMP price up nearly $9 to around $16, despite some recent decline.
Senators Schiff and Warren highlighted ethical concerns in their letter, pointing to potential violations of federal bribery laws and emoluments clauses of the Constitution, noting that many top token holders are not American. In particular, one wallet linked to Justin Sun, founder of the Tron network, has raised alarms about potential foreign influence on Trump’s operations through the memecoin. Essentially, they fear this cryptocurrency could serve as a vehicle for foreign entities to gain undue access to the former president.
However, the effectiveness of the letter is questionable as Jamieson Greer, the acting director of the U.S. Office of Government Ethics, is a Trump appointee, leaving many sceptical about possible repercussions. This is compounded by the Republican control of Congress, which limits any form of accountability against Trump’s financial pursuits. Alongside this, Rep. Shri Thanedar has introduced impeachment articles against Trump, although this too is largely symbolic given the GOP’s domination.
Meanwhile, the SEC is currently in a wait-and-see approach concerning its case against the Binance exchange—its proceedings have been paused for further discussions, raising eyebrows speculatively about how closely Binance is aligning itself with Trump since his recent election. Rumours swirl around Binance potentially partnering with Trump for its U.S. exchange and listing a new stablecoin backed by Trump, creating an atmosphere of intrigue around upcoming deals.
The launch of Trump’s exchange-traded funds (ETFs) was confirmed with a partnership between Trump Media and Technology Group, Crypto.com, and Yorkville America Digital. These ETFs are expected to cater to a uniquely American market, incorporating various digital assets including Bitcoin and the CRO token, amid ongoing controversies.
In a rather dramatic turn, other crypto figures like Roger Ver have also tried their hand in influencing Trump. Following his arrest in Spain and ongoing legal battles, Ver has initiated a campaign to gain Trump’s favour, investing heavily into lobbying efforts. This continues a trend where crypto figures hope to leverage their connections to Trump for business or personal gain, raising considerable ethical questions.
The intersection of Trump, ethics in the crypto space, and community influence through various channels remains as murky as ever. With all these developments, it’s clear that the fusion of politics and crypto continues to evolve, setting the stage for potentially groundbreaking twists in the future, but what this means for the public at large is still uncertain.
