Donald Trump is set to raise millions this month through two fundraising events. The first, featuring a US$1.5 million dinner, took place on May 5, while a second event on May 22 will require attendees to own the $TRUMP meme coin. These moves highlight the dramatic increase in campaign fundraising costs and the growing influence of cryptocurrency in political financing, though they also raise questions about regulation and transparency in donations.
Former President Donald Trump is gearing up for a significant fundraising push this month, aiming to rake in millions. Two events are planned by MAGA Inc., the super PAC backing Trump, with one already held and another scheduled for later this month. The first event was a lavish dinner on May 5 boasting a price tag of US$1.5 million per plate, where venture capitalist David Sacks was a guest.
Following that, there’s the May 22 event at Trump National Golf Club, just outside Washington, D.C. But here’s the catch: attendees must own the $TRUMP meme coin to gain entry. This is an interesting strategy that taps into the growing world of cryptocurrency and memecoins while also catering to political philanthropists.
Looking at the bigger picture, the fundraising landscape is changing rapidly. The US$1.5 million dinner price signifies a drastic rise in fundraising costs over the years. In fact, the average amount needed for a House seat was about $407,600 back in 1990, but that exploded to US$2.79 million by 2022. Senate races, too, jumped significantly from an average of $3.87 million to a staggering $26.53 million.
These increases echo a broader shift in campaign finance laws, particularly after the 2010 Citizens United ruling, which removed spending restrictions for corporations and unions. In the recent election cycle, total campaign spending hit almost US$14 billion, an all-time high that has transformed how campaigns raise funds. With high-priced events becoming a norm, it seems extraordinary donation amounts are now simply part of the political fundraising toolkit.
Trump’s venture into crypto fundraising reflects a watershed moment in the political realm. In 2017-2018, cryptocurrency donations for all political candidates averaged around US$1.2 million, but Trump’s current campaign has already garnered around $3 million from crypto. This signifies a shift from traditional fundraising channels as cryptocurrency is rapidly moving into the mainstream of political financing.
Moreover, it shows how pro-crypto political action committees have started to make waves, contributing upwards of US$119 million in this electoral cycle. The Fairshake super PAC – dedicated to supporting crypto-friendly candidates – has raised almost US$203 million, underscoring the growing financial clout of the cryptocurrency industry in politics.
However, the use of the $TRUMP token comes with its own set of challenges, especially around regulation and transparency. Even as the Federal Election Commission allows cryptocurrency donations, they still frame these as “in-kind” contributions, necessitating accurate evaluation and contributor identification. The anonymity blockchain offers, though, complicates compliance with these regulations, especially since it can be tough to confirm a donor’s identity or citizenship.
This has raised eyebrows among critics who flag potential risks related to the obscure nature of crypto donations. They argue that such anonymity can shield illicit transactions or defensive financing, particularly in competitions like the leaderboard created for the $TRUMP token. The disparity in regulations adds further complexity, as some states, like California, have outright banned crypto donations, making the fundraising landscape uneven and hard to navigate.
