Democrats Threaten Legal Action Over Trump's Memecoin Dinner

Congressional Democrats have taken a strong stance against U.S. President Donald Trump's upcoming memecoin dinner, threatening legal action and planning protests. Trump, whose affiliated businesses issued the $TRUMP memecoin just days before his second inauguration, announced a dinner for the 220 largest holders of his token at the Trump National Golf Club in Potomac Falls, Virginia. This announcement led to a surge in token purchases as interested parties sought to secure an invitation.

Critics have labeled the move as corrupt, highlighting that foreign buyers, who are otherwise unable to legally donate to the president, are purchasing tokens. The opacity surrounding the attendees' identities has also raised concerns, with some attendees citing the ability to maintain anonymity as a factor in their decision to attend.

Tron creator Justin Sun boasted about being the top holder of the token ahead of the dinner, with blockchain explorers suggesting that the wallet with the largest $TRUMP holding is tied to HTX, a crypto exchange connected to Sun.

Sen. Richard Blumenthal, a Connecticut Democrat, criticized the event, stating that Trump was "auctioning" access to the White House with the memecoin dinner. Blumenthal suggested that a lawsuit might force Trump to comply with rules around foreign gifts or payments, citing the U.S. Constitution’s foreign emoluments clause. He also mentioned that private groups could bring a lawsuit, which lawmakers could support through Amicus briefs.

Representative Maxine Waters, the ranking Democrat on the House Financial Services Committee, introduced a new bill aimed at making the president's crypto dealings explicitly illegal. The legislation, labeled the Stop Trading, Retention, and Unfair Market Payoffs in Crypto Act of 2025, prohibits senior government officials and lawmakers from owning, controlling, or serving as an officer of a crypto firm or token issuer, and from trading in digital assets if they have special insight because of their government role. Waters criticized Trump's actions, stating that his exploitation of the presidency to promote shady, fraudulent crypto ventures is a blatant disregard for the rule of law.

Democratic Senators Elizabeth Warren, Jeff Merkley, and Chris Murphy were set to hold a press conference to decry the president's dinner plans. They demanded that Trump reveal the names of the evening's attendees, citing concerns about foreign influence, national security, and growing corruption within Trump’s crypto empire. Merkley was also set to join an evening protest near the golf club dinner location.

The Democrats' actions reveal a split within the party regarding crypto legislation. While some lawmakers have maintained opposition to crypto legislation, another faction recently joined with Republicans to advance a stablecoin bill in the Senate. Their argument is that Trump's actions may be inappropriate or even illegal, but new legislation does not need to further underline that point.