When Donald Trump embraced blockchain expertise throughout his presidential marketing campaign, the crypto {industry} celebrated that they lastly had an ally operating for the highest U.S. workplace. They didn’t anticipate to additionally get a competitor.
On Thursday, the President will host a “Gala Dinner” for the highest 220 holders of his $TRUMP memecoin at his golf membership in Virginia—an unprecedented mix of public duties and personal enterprise dealings, particularly with many of the attendees remaining pseudonymous.
The formal dinner, which can start at 7 p.m. and requires a background examine, has sparked an outcry from Democrats and ethics consultants who’ve identified that Trump’s household enterprise, which launched the coin, controls the overwhelming majority of the cryptocurrency’s holdings and buying and selling charges. However they aren’t the one ones expressing concern: The crypto foyer, which Trump wooed on the marketing campaign path and through his first few months in workplace, is beginning to privately voice its displeasure, partly as a consequence of concern that the optics of the dinner may derail proposed crypto laws that’s at a pivotal juncture in Congress.
“It’s a horrible look for him, the industry, and the country,” mentioned one crypto lobbyist representing main {industry} companies, who spoke with Fortune on the situation of anonymity to debate delicate shopper relationships. “No one really seems to care in the Trump administration.”
“The President is working to secure GOOD deals for the American people, not for himself. President Trump only acts in the best interests of the American public—which is why they overwhelmingly re-elected him to this office, despite years of lies and false accusations against him and his businesses from the fake news media,” mentioned White Home spokesperson Anna Kelly in an announcement shared with Fortune.
Memecoin extravaganza
After decrying Bitcoin as a “scam” only a few years in the past, Trump warmed as much as the sector whereas operating for his second time period. He not solely attended crypto {industry} occasions, together with an annual Bitcoin confab in Nashville final summer season, but additionally started creating his personal blockchain merchandise along with his sons. That culminated within the launch of his self-branded memecoin, named $TRUMP, on the weekend earlier than his inauguration. With Trump-affiliated entities controlling 80% of the provision and gathering buying and selling charges, the memecoin initially soared to a market cap of over $9 billion earlier than dropping by over 80%.
After taking workplace, Trump continued to launch new crypto merchandise by means of his household’s blockchain mission, World Liberty Monetary, together with launching its personal stablecoin USD1 in late March, simply because the Home of Representatives and Senate have been advancing two payments that may set up stablecoin regulation. However maybe Trump’s most ostentatious transfer was his April announcement that the highest holders of his memecoin may be part of him for dinner, which brought on its value to soar by almost 60% in simply an hour. Attendees will embody many international people, such because the Chinese language crypto billionaire Justin Solar, who has been the frequent goal of U.S. regulators, elevating questions on whether or not the occasion violates key ethics provisions.
Trump’s litany of crypto actions has drawn scrutiny from Democratic lawmakers, together with those that have beforehand backed blockchain laws. His foray into stablecoins, and specifically using USD1 to finance a $2 billion funding into Binance by an Emirati funding agency, almost tanked the prospects of stablecoin laws within the Senate.
Democrats have launched laws that may restrict his involvement with crypto, together with a invoice launched by Home Monetary Companies Committee rating member Maxine Waters (D-Calif.) on Thursday referred to as the Cease Buying and selling, Retention, and Unfair Market Payoffs in Crypto Act of 2025, or Cease TRUMP.
“Nowhere is Trump’s blatant disregard and disrespect for the rule of law more apparent than in the way he has exploited the office of the Presidency to promote shady, fraudulent crypto ventures that hold no real value, and serve no true purpose other than to pad his pockets,” Waters mentioned in an announcement shared with Fortune.
Whereas crypto leaders have publicly supported Trump’s blockchain initiatives, arguing that it demonstrates his enthusiasm towards the sector, many nonetheless privately acknowledge that the memecoin dinner is a blemish on the {industry}—and will impede laws. “Trump’s family crypto business dealings are really compromising the ability to get good policy in place,” mentioned one other individual near the crypto foyer, who spoke with Fortune on the situation of anonymity.
Few Republican policymakers have acknowledged the awkward place, although crypto booster Cynthia Lummis (R-Wyo.) advised NBC that the dinner “gave her pause.” The individual near the crypto foyer advised Fortune that they’ve expressed issues to David Sacks and Bo Hines, Trump’s prime crypto advisors, however with out a lot success.
The opposite lobbyist mentioned that whereas many within the {industry} are publicly supportive of the president, particularly after a wave of industry-friendly regulatory actions, the dynamic is completely different behind closed doorways, particularly with Trump launching aggressive merchandise. “We’re all embarrassed and humiliated,” they mentioned. “It’s so crypto to have this happen.”
This story was initially featured on Fortune.com
