US Democrat Proposes Anti-Corruption Legislation Ahead of Trump’s Gala
United States Representative Maxine Waters (D-CA), the leading Democrat on the House Financial Services Committee, has put forth a new bill aimed at prohibiting the president and other lawmakers from participating in specific digital asset activities. This move comes amid rising apprehensions among Democratic lawmakers regarding President Donald Trump’s involvement in the cryptocurrency space, particularly concerning his memecoin. Supported by 14 Democratic co-sponsors, the proposed legislation, dubbed the “Stop Trading, Retention, and Unfair Market Payoffs in Crypto Act of 2025” (referred to as the Stop TRUMP in Crypto Act of 2025), seeks to combat what they term as “crypto corruption.” The bill specifically targets the ownership of digital assets by the president, vice president, members of Congress, and their families, aiming to prohibit them from holding digital assets that grant them the power to unilaterally alter those assets. Moreover, it seeks to prevent these officials from owning, promoting, or profiting from digital assets while they are in office. The introduction of this bill coincided with President Trump hosting a gala for prominent holders of his $TRUMP memecoin on May 22. Rep. Waters emphasized the dangers of Trump’s crypto activities, stating, “Trump’s crypto con is not just a scam to target investors; it’s also a dangerous backdoor for selling influence over American policies to the highest foreign bidder.”
Trump’s Engagement with Digital Assets
Since beginning his second term in January, President Trump has prioritized the growth of the U.S. digital asset sector. He has made numerous declarations advocating for the industry, including a goal to establish America as the leading nation in cryptocurrency. His administration has rapidly sought to alter the regulatory framework in the U.S. to favor crypto, reversing prior measures that hindered the sector, appointing crypto-friendly advocates to significant regulatory positions, and issuing an executive order aimed at creating a strategic reserve of Bitcoin. A notable shift in this crypto-friendly direction is evident within the Securities and Exchange Commission (SEC). Previously led by Gary Gensler, the SEC adopted a strict enforcement approach against those in the digital asset sector who failed to adhere to securities regulations. Gensler stepped down at the beginning of Trump’s presidency, and Mark Uyeda was appointed as the interim chair, bringing a more lenient stance towards the industry. Since Uyeda’s appointment, the SEC has swiftly discontinued numerous investigations and lawsuits, including those against notable entities like Crypto.com, Yuga Labs, and Coinbase.
Democratic Backlash Against Trump’s Crypto Ventures
However, it is not merely the regulatory changes under Trump that have driven Democratic lawmakers to voice their concerns; rather, it is the president’s personal involvement in the cryptocurrency sector that has raised significant alarm. Just three days prior to his inauguration, the Trump administration launched the $TRUMP memecoin on the Solana blockchain, followed by the Trump-backed World Liberty Financial (WLF) introducing a stablecoin in March. Critics argue that Trump’s efforts to create a more crypto-friendly regulatory environment while profiting from digital asset initiatives raises serious ethical questions and presents a conflict of interest that undermines legislative processes.
Democratic Criticism Intensifies
On May 6, Rep. Waters exited a joint session of the House Financial Services and Agriculture committees that addressed cryptocurrency policy, citing concerns related to the Trump family’s cryptocurrency businesses. She expressed her discomfort with the proceedings, stating, “because of the corruption of the president of the United States and his ownership of crypto and his oversight of all the agencies.” This sentiment was echoed by Democratic colleagues, including Rep. Angie Craig (D-MN), who remarked on the appropriateness of highlighting what she sees as self-serving actions from the Trump administration regarding the promotion of memecoins. Furthermore, Senator Richard Blumenthal (D-CT), the leading Democrat on the Senate Permanent Subcommittee on Investigations, publicly criticized Trump’s actions, labeling them as a blatant example of corruption. Blumenthal stated, “Trump’s crypto corruption is so massive and brazen, there is little doubt that he will keep selling out the American people until Republicans grow a spine.” In response to these allegations, House Democrats have moved to introduce their own legislation, the ‘Stop TRUMP in Crypto Act of 2025,’ which has garnered support from several lawmakers. Rep. Alexander ‘Al’ Green (D-TX) emphasized the necessity of the bill, asserting that President Trump’s actions have brought unprecedented levels of corruption to the nation, highlighting the importance of preventing future public officials from emulating his controversial conduct.
