Senators Demand Ethics Probe into Trump's TRUMP Token Dinner

Democratic Senators Adam Schiff and Elizabeth Warren have called for an ethics investigation into a dinner hosted by Donald Trump for holders of the TRUMP token, a meme coin associated with him. The senators expressed serious concerns following reports of substantial fee earnings by insiders, which they believe could be indicative of a "pay to play" scheme. The dinner, which was attended by select individuals who held the TRUMP token, has raised questions about potential ethical violations and conflicts of interest.

The TRUMP token, which has seen significant price surges, has been a subject of controversy due to its association with Trump and the potential for insider trading. The senators' demand for an investigation comes amid growing concerns about the intersection of politics and cryptocurrency, particularly in light of the foreign ties that have surfaced among some of the token holders. Ethics commentators have also called foul, highlighting the potential for corruption and misuse of power.

Warren and Schiff's concerns center on the promotion announced last Wednesday, which offered the top 220 registered holders of the TRUMP Solana token exclusive access to a May 22 dinner at Trump National Golf Club. Of these, the top 25 investors were to receive a VIP reception with President Trump. The token's price went parabolic on the news, only to plunge 18% the day after. At the time of writing, data shows the token's price rising from about $12 to $15.2 since the letter from the two Democrats. Its market capitalization has ballooned to just over $3 billion from $1.6 billion just a week ago.

The senators' letter to the Office of Government Ethics cited several reports concerning anonymous foreign influence, including one instance where an investor bought roughly $13 million worth of tokens through a purportedly Chinese-founded crypto exchange. The pair also claims that there is a "troubling prospect" that foreign actors may be using the meme coin "to buy influence with President Trump and his associates" without “needing to disclose their identities publicly." Organizers explicitly require attendees to provide their legal name, contact information, and wallet address, according to the event’s webpage.

The senators' call for an ethics probe is part of a broader demand for accountability from Democratic lawmakers, who have expressed alarm over the potential ethical violations surrounding the TRUMP token and the dinner. The investigation, if launched, would seek to determine whether the dinner constituted a "pay to play" scheme, where access to Trump and his inner circle was granted in exchange for holding the TRUMP token. This would be a significant development in the ongoing scrutiny of Trump's activities since leaving office, and could have implications for the broader cryptocurrency industry.