Update (May 5 at 3:27 pm UTC): This article has been updated to include comments from Niko Demchuk and Yarden Noy.
US President Donald Trump will host a gala dinner for top holders of his Official Trump (TRUMP) memecoin despite bipartisan criticism and renewed calls for impeachment.
In a May 5 Truth Social post, Trump announced that he will hold a gala dinner with major TRUMP holders on May 22. The announcement follows multiple US lawmakers expressing concern over the initiative.
In late April, Massachusetts Senator Elizabeth Warren called on government officials to address questions related to Trump’s memecoin and his media company. Controversies grew after Trump announced a dinner and White House tour for some holders of his TRUMP memecoin.
“President Trump’s announcement promises exclusive access to the presidency in exchange for significant investment in one of the President’s business ventures,” a letter co-signed by California Democratic Senator Adam Schiff read.
A call for impeachment over a memecoin
Also in late April, Senator Jon Ossoff expressed support for impeaching Trump during an April 25 town hall, citing the president’s plan to host the dinner for top TRUMP memecoin holders. He said:
“When the sitting president of the United States is selling access for what are effectively payments directly to him. There is no question that that rises to the level of an impeachable offense.”
Pro-crypto Senator Cynthia Lummis and at least one other Republican in Congress were reportedly also critical of Trump for offering the top holders of his memecoin a dinner and White House tour. Lummis, of Wyoming, reportedly said that the US president offering exclusive access to himself and the White House for people willing to pay for it “gives [her] pause.”
In a May 4 post on X, Warren claimed the Trump family’s stablecoin surged in market value due to a “shady crypto deal with the United Arab Emirates,” which involved settling the investment using USD1. She argued this raised serious national security concerns and warned against the Senate passing crypto-friendly legislation.
Warren expressed concerns around foreign involvement in the US president’s finances. She also suggested that the Senate should refrain from approving pro-crypto bills:
“The Senate shouldn’t pass a crypto bill this week to facilitate this kind of corruption.“
Related: America’s crypto renaissance is already failing; but we can fix it
Niko Demchuk, head of legal at crypto compliance firm AMLBot, told Cointelegraph that Senator Warren’s concerns over “pro-crypto” legislation underscore the ongoing tension between encouraging stablecoin innovation and addressing risks such as foreign influence and potential self-dealing by public officials. He added that lawmakers can implement safeguards like disclosure requirements, conflict-of-interest rules, and independent audits to strike a balance:
“These safeguards address Warren’s concerns by prioritizing transparency and accountability without stifling legitimate stablecoin development. They might ensure the U.S. remains a hub for responsible innovation while protecting against misuse by public officials or foreign actors.“
According to Yarden Noy, a partner at the crypto legal firm DLT Law, no regulatory or disclosure requirements currently apply to such stablecoin deals. “The president’s legal team can make a very strong case that no regulatory or disclosure requirements would apply here,“ he said.
Noy noted that some limitations and disclosures may apply, including a constitutional prohibition on emoluments, but their application in this case “is very questionable.” He added:
“The US should tackle the issue, not blame the technology being used.“
Senator Warren’s post included a clip from a recent interview during which Trump gave conflicting answers to whether he has profited from his memecoin launched in January, just days before he reentered the White House. During the clip, the president claims not to have “even looked” whether he profited off his endeavors.
Related: Elizabeth Warren joins call for probe of Trump over crypto tokens
The United Arab Emirates deal
On May 1, Abu Dhabi-based investment firm MGX used Trump-backed stablecoin USD1 to settle a $2 billion investment in Binance. According to CoinMarketCap data, the stablecoin’s market cap shot up from under $137 million on May 1 to nearly $2.13 billion on May 2.
Eric Trump announced the deal during a panel discussion at Token2049 in Dubai. Trump, the son of the president, serves as executive vice president of the Trump Organization. He said during the event:
“The US is seeing that the financial world has to progress. It’s a joke. Why do banks run nine to five, Monday to Friday, with an hour and a half of lunch break? It doesn’t make sense.”
Much like the memecoin, the USD1 stablecoin also attracted its fair share of criticism. In early April, some US lawmakers went as far as to allege that Trump wanted to replace the US dollar with USD1.
Magazine: Trump’s crypto ventures raise conflict of interest, insider trading questions
