Lawmakers Introduce Bill to Ban Politicians from Owning Crypto

Democratic lawmakers have introduced legislation aimed at curbing what they describe as rising "crypto corruption" in Washington, just hours before President Donald Trump's high-profile gala for holders of his memecoin. Led by Rep. Maxine Waters, 15 House Democrats proposed the "Stop Trading, Retention, and Unfair Market Payoffs in Crypto Act of 2025." This bill seeks to prohibit the president, vice president, members of Congress, and their immediate families from owning, promoting, or profiting from digital assets while in office. Additionally, lawmakers would be barred from holding crypto assets in ways that allow them to exert unilateral control over the tokens.

Rep. Waters criticized Trump's involvement in cryptocurrency, stating that his "crypto con" is not just a scam targeting investors but also a dangerous backdoor for selling influence over American policies to the highest foreign bidder. This legislation comes amid growing criticism of Trump's deepening ties to crypto, including the recent launch of personal memecoins by Trump and his wife, Melania. The Trump family has also backed a stablecoin through the crypto firm World Liberty Financial, and his sons are linked to a Bitcoin mining venture. Blockchain records indicate that Justin Sun, founder of Tron and a Chinese national, is one of the largest holders of TRUMP (TRUMP) — the memecoin that serves as a ticket to Thursday night’s dinner.

The exclusive gala, hosted at Trump’s golf club in Virginia, invites the top 220 $TRUMP holders, some of whom spent between $55,000 and nearly $38 million in tokens to secure an invitation. Critics, including Sen. Richard Blumenthal, accuse Trump of "auctioning" access to the White House and potentially violating the Constitution’s ban on foreign gifts. Protests are happening outside the event, with Senators Chris Murphy, Elizabeth Warren, and Jeff Merkley, along with Rep. Sam Liccardo and advocacy groups, calling out Donald Trump’s upcoming “meme coin” fundraising dinner as a threat to national security and a potential corruption risk. At a press conference, the group demanded the release of attendee names and any promised favors. Murphy also promoted his recently introduced MEME Act, aimed at curbing digital asset profiteering by public officials.

The proposed legislation and the protests outside the gala highlight the growing concerns about the intersection of politics and cryptocurrency. The event has sparked a debate about the potential conflicts of interest and ethical implications of politicians profiting from digital assets. The outcome of this debate will have significant implications for the future of politics and finance in the digital age, as lawmakers and the public grapple with the need for regulations to ensure transparency and accountability in the use of cryptocurrency.