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Highlights
- Maxine Waters unveils bill banning crypto activity by U.S. officials ahead of Trump’s crypto dinner.
- Trump-linked memecoin, USD1 stablecoin, and BTC reserve plans spark ethics concerns in Congress.
- Chinese investors linked to TRUMP tokens raise red flags amid ongoing DOJ and SEC scrutiny.
In hours leading to the Trump crypto dinner, US Representative Maxine Waters has introduced a new bill aimed at restricting digital asset activities by top US officials.
The bill, titled the “Stop Trading, Retention, and Unfair Market Payoffs in Crypto Act of 2025” or the “Stop TRUMP in Crypto Act,” directly addresses concerns over political figures engaging in cryptocurrency ventures while in office.
Maxine Waters Proposes ‘Stop TRUMP in Crypto Act’
Maxine Waters’ proposed legislation was announced just hours before a private Donald Trump-hosted crypto dinner. It seeks to prohibit the president, vice president, and members of Congress—as well as their immediate family members—from issuing, owning, or promoting cryptocurrencies during their time in office.
According to Maxine Waters, the crypto bill is designed to prevent public officials from using their political influence to benefit financially from digital assets. It would ban officials from receiving any direct or indirect compensation from the marketing, mining, or trading of digital currencies in the US.
The bill also aims to prevent the trading of digital assets when a government official holds material non-public information. Waters stated,
“Trump’s crypto con is not just a scam to target investors; it’s also a dangerous backdoor for selling influence.”
Trump-Linked Crypto Ventures Draw Attention
The legislation comes amid a growing spotlight on Trump’s connections to cryptocurrency projects. In January, Trump and his associates launched a memecoin, with some tokens tied to Melania Trump. Later, the Trump family introduced USD1, a dollar-backed stablecoin issued through World Liberty Financial.
Waters referenced these ventures, raising concerns about possible conflicts of interest and ethical risks. The USD1 stablecoin, despite its recent Binance listing, currently operates without clear federal oversight, and few details about its structure have been released publicly.
Additionally, reports suggest that Trump’s sons are supporting plans for a national Bitcoin reserve and are linked to mining operations. Waters and other lawmakers have pointed to these developments as examples of political figures becoming too involved in the crypto space.
Political Reactions and Dinner Controversy
Maxine Waters timed the announcement of the bill with a Trump fundraising event set to take place at Trump National Golf Club. The private Trump crypto dinner is expected to gather 220 individuals who are major holders of Trump’s meme coin and supporters of his crypto projects.
Democratic lawmakers and consumer advocacy groups have planned responses to the event. Senators Elizabeth Warren and Chris Murphy, along with Public Citizen, will appear at a press event on the same day. Two Democratic groups have also organized protests outside the dinner venue.
Waters criticized the event for rewarding those who financially backed Trump-linked tokens, suggesting that it may give special access to individuals investing in his ventures.
“We are witnessing a direct connection between political fundraising and crypto promotion,” Waters said.
Foreign Influence and Ongoing Investigations
Concerns have also grown about foreign investors taking part in Trump-related crypto projects. Justin Sun, a Chinese-born crypto billionaire and founder of TRON, reportedly purchased over $22 million worth of the TRUMP meme coin.
Sun has previously been investigated by the U.S. Department of Justice and was sued by the SEC in 2023 for alleged fraud and market manipulation.
Concurrent with the worries, recent reports show that GD Culture Group, a Nasdaq-listed company with Chinese ties, announced plans to invest $300 million in the TRUMP token and Bitcoin. In addition, another company, Addentax Group Corp., has said it may acquire up to $800M in crypto, including 8,000 BTC and TRUMP tokens using stock-based deals which has added further worries into the foreign influence concerns.
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