A high-profile $TRUMP coin gala hosted by U.S. President Donald Trump is now under legal and ethical scrutiny, as 35 House Democrats, led by Rep. Sean Casten (IL-06) and Rep. Adam Smith (WA-09), formally called on the Department of Justice (DOJ) to investigate potential violations of federal bribery laws and the Constitution’s foreign emoluments clause.In a May 22 letter, Casten and Smith accused Trump of using his political status to promote a meme coin tied to his name, alleging the exclusive gala dinner for the top 220 investors of $TRUMP potentially allows foreign actors to buy influence in U.S. policy decisions.
New: Sean Casten and Adam Smith just sent a letter to DOJ requesting an investigation into the dinner Trump is holding tonight for buyers of his memecoin.Read: https://t.co/kFjtjSAZDf pic.twitter.com/qn4pVhngPf— Eleanor Mueller (@Eleanor_Mueller) May 22, 2025
Foreign Influence Concerns Center on Justin Sun
Concerns were heightened after Justin Sun, a controversial Chinese founder of Tron, claimed he was the top investor in the $TRUMP token. Sun had previously been charged with fraud by the U.S. Securities and Exchange Commission (SEC) — charges which were quietly dropped shortly after he invested millions into World Liberty Financial, the platform tied to the Trump meme coin.
Lawmakers said this could constitute foreign political contributions, which are illegal under U.S. law. They warned that the $TRUMP gala opens “the door for foreign governments to buy influence with the President, all without disclosing their identities.”
“It is just the latest example of President Trump disregarding ethics norms, introducing further conflicts of interest, and using his office for self-enrichment,” the letter stated.
Ethics, Laws and Crypto in the Crosshairs
The event, held at Trump National Golf Club near Washington, D.C., is now a flashpoint in the broader political debate over crypto and political ethics. On the same day as the dinner, Rep. Maxine Waters (D-CA) introduced new legislation aiming to ban elected officials from holding significant crypto assets, targeting concerns of personal financial gain and undisclosed influence.
While the Democratic push highlights growing unease over crypto’s role in politics, it remains uncertain whether they hold sufficient congressional power to pass enforcement measures or ethics reform targeting Trump’s crypto ventures.
Implications for Trump’s Campaign and Crypto Regulation
As Trump ramps up his 2024 presidential campaign, the scrutiny around the $TRUMP coin raises bigger questions about the intersection of politics, digital assets, and transparency. This case could serve as a precedent for how crypto is regulated in political fundraising and influence, particularly regarding foreign involvement.
At press time, the DOJ has not issued a public statement in response to the inquiry.
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