US President Donald Trump plans to host a gala dinner for top holders of his Official Trump (TRUMP) memecoin, despite criticism and calls for impeachment. In a Truth Social post on May 5, Trump announced the event for May 22, following concerns expressed by lawmakers.
Massachusetts Senator Elizabeth Warren and California Democratic Senator Adam Schiff co-signed a letter criticizing the initiative, which promises exclusive presidential access in exchange for investment in Trump’s ventures. Senator Jon Ossoff supported impeachment over this plan during an April 25 town hall.
Pro-crypto Senator Cynthia Lummis and other Republicans expressed concerns about offering White House access to memecoin holders. Warren warned against Senate approval of pro-crypto bills due to potential corruption.
Niko Demchuk from AMLBot highlighted the tension between stablecoin innovation and risks like foreign influence. Safeguards such as disclosure requirements could balance innovation with accountability.
Yarden Noy from DLT Law noted that no current regulatory or disclosure requirements apply to such stablecoin deals. The president’s legal team could argue no regulations apply here.
On May 1, Eric Trump announced a deal where MGX used Trump-backed stablecoin USD1 to settle a $2 billion investment in Binance, causing the stablecoin’s market cap to surge.
— new from Cointelegraph