Former UK minister Rory Stewart said today that Trump's meme coin allows contributions to the campaign without necessary financial disclosures.
Stewart discussed this topic in his podcast, condemning Trump's use of meme coins for personal gain as an "abhorrent" form of corruption.
Is Trump's meme coin a new form of influence?
In the release of his podcast "The Rest is Politics," which aired this morning, Stewart outlined how Trump's meme coin could be used for campaign contributions, arguing that it is a new way for influential individuals and well-known companies to influence Trump's political decisions.
Stewart suggested that since the crypto industry in the US remains largely unregulated, Trump may receive these contributions without any financial accountability.
"He does not declare any money that comes in, he does not declare any income he receives from this. But it’s an amazing way to make contributions to the campaign," Stewart said in the podcast.
He highlighted a specific example that emerged earlier this week. Javier Selgas, CEO of North American shipping company Freight Technologies Inc., announced a $20 million investment in TRUMP tokens.
Since the company is public, the stock exchange requires it to disclose how it spends its funds.
"In his submission to the US Securities and Exchange Commission, he notes that this is a smart business decision, as it advocates for the business interests of [his] company in securing a free trade agreement," Stewart added.
The official press release from the company confirms these intentions. Stewart cited other examples indicating that President Trump is using meme coins to encourage others to gain his favor.
Concerns about financial gain and political loyalty
At one point in the podcast, Stewart expressed surprise at how the US president uses his cryptocurrency projects for political and financial gain.
"Trump's corruption goes beyond imagination. It is so staggering that we can hardly keep up with it," he said, adding: "It’s incredibly easy – effectively a direct transfer to Donald Trump's bank account from any foreign diplomat [or] businessman in the world, and we are already seeing that when you make these transfers, lawsuits disappear, [and] contracts are awarded."
Stewart implicitly mentioned crypto companies like Coinbase and Ripple, which donated millions to Trump's presidential campaign ahead of the 2024 elections. Earlier, Public Citizen reported that each spent about $50 million on campaign financing.
In March, the US Securities and Exchange Commission dropped civil lawsuits against Coinbase and Ripple. This news immediately raised concerns about conflicts of interest.
Stewart also noted the possibility of paying millions for a private dinner with Trump. He claimed that this could be a way to buy access and influence.
Access to Mar-a-Lago for major donors
In March, reports emerged that business leaders could secure a personal meeting with the president at Mar-a-Lago for a significant fee.
"You can give him money directly, or it seems you can pay between $1 to $5 million for dinner at Mar-a-Lago or a meeting with him," Stewart said in the podcast.
This opportunity closely aligns with Trump's recent announcement related to meme coins, which offers an exclusive dinner with the president for top TRUMP token holders. According to the official rules, buyers must be among the top 220 holders of TRUMP tokens by May 22 to qualify for the dinner. The top 25 holders will also receive a VIP tour of the White House.
Is the Current System for Regulating Cryptocurrency in Politics Adequate?
Last week, in an exclusive interview for BeInCrypto, former White House ethics lawyer Richard Painter stated that Trump's current projects with meme coins do not violate the law.
Since meme coins are not considered securities under the regulations of the US Securities and Exchange Commission, TRUMP does not violate federal securities laws.
According to Painter, assuming Trump is not taking bribes, dinner with meme coins does not violate constitutional provisions regarding rewards. However, he warned that if the dinner does not happen, Trump could face fraud charges from state attorneys general or private individuals.
In today's interview, Stewart added that during his time in office, Trump suspended a number of laws, which only heightened existing concerns about conflicts of interest.
"The safeguards that the US has put in place to try to deal with this are, of course, the laws that Trump has suspended. There are laws about foreign agent registration aimed at preventing payments from Russian or Cuban agents to American politicians – this has been suspended by Trump. The Foreign Corrupt Practices Act, which concerns companies going abroad and paying bribes, has also been frozen by Trump. Consumer protection laws – frozen by Trump," Stewart said.
Stewart's comments highlighted the growing need for clarity regarding the use of digital assets in political activities, particularly meme coins.#BinanceSquare #Write2Earn #Ripple #memecoin🚀🚀🚀 #TRUMP $TRUMP