Trump hosts exclusive gala for top memecoin buyers

Donald Trump on Thursday will host a private event for hundreds of top investors in his crypto memecoin, in an unprecedented melding of US presidential power and personal business.

Donald Trump will host on Thursday an exclusive gala for the top investors in his crypto memecoin, in a move that blends US presidential power with personal business dealings.

The gala at Trump's Virginia golf club near Washington will see the 220 biggest purchasers of the $TRUMP memecoin he launched in January invited for dinner.

The top 25 investors will get a private session with Trump before dinner, and a White House tour, according to an event website.

This arrangement has drawn criticism as it could create a loophole in political influence rules.

Foreign actors, legally barred from contributing to Trump's political causes through official channels, can now potentially buy access and influence through the cryptocurrency.

Data analytics firm Inca Digital has confirmed that many transactions occurred through international exchanges unavailable in the United States, which points to foreign buyers.

Among them, Chinese-born crypto entrepreneur Justin Sun claims the top investor position, having pledged $20 million to the memecoin as part of his $93 million total investment in Trump-linked crypto ventures.

Sun, founder of top 10 cryptocurrency TRON, was being probed by US authorities for market manipulation, but regulators, now appointed by Trump, agreed in February to a 60-day pause to seek a settlement.

According to the website Popular Information, a few weeks before that decision, Sun purchased $30 million in digital assets from a venture backed by Trump and his family.

"Honored to support @POTUS and grateful for the invitation to attend President Trump's Gala Dinner as his TOP fan!" Sun wrote Tuesday on X, saying he looked forward to "discussing the future of our industry."

- More regulation?-

Some Republicans have expressed concerns about the dinner, but most criticism has come from Democrats.

Senator Chris Murphy on Wednesday slammed the exclusive dinner as an opportunity for the world's wealthy including "foreign oligarchs" to get a "secret meeting"" with the US president as they seek favors and influence.

"It's fundamentally corrupt -- a way to buy access to the President," Murphy stated on X.

The White House retaliated against those who have made insinuations of impropriety.

"I think it's frankly ridiculous that anyone in this room would even suggest that President Trump is doing anything for his own benefit," Press Secretary Karoline Leavitt said last week.

"He left a life of luxury and a life of running a very successful real estate empire for public service."

The dinner comes as the Senate is pushing through legislation to more clearly regulate cryptocurrencies, a long-sought request of the industry.

Senators on Monday advanced a landmark bill known as the GENIUS Act that proposes a regulatory framework for stablecoins -- a type of crypto token seen as more predictable for investors as its value is pegged to hard currencies like the dollar.

That legislation had faced roadblocks in part because of Trump's dabbling in cryptocurrencies -- a rising sector he once dismissed as a scam.

His stance reversed during the 2024 presidential campaign when crypto tycoons, frustrated by perceived unfair treatment under the Biden administration, became major contributors to his campaign.

The cryptocurrency industry struggled with significant scandals during Biden's presidency, most notably the collapse of the FTX crypto exchange and the 25-year fraud sentence for founder Sam Bankman-Fried.

As the stablecoin bill gains momentum in the Senate, Bitcoin reached a record high Wednesday of nearly $109,500.

- Expanding empire-

Trump's newfound enthusiasm for digital currencies has expanded into multiple ventures led primarily by his eldest sons.

Their growing portfolio includes investments in Binance, a major crypto exchange whose founder seeks a presidential pardon to re-enter the US market.

This investment flows through World Liberty Financial, a Trump family-backed venture launched last September with significant Mideast deals.

The company's founding team includes Donald Jr. and Eric Trump alongside Zach Witkoff, son of Trump's diplomatic adviser.

President Trump has taken concrete steps to reduce regulatory barriers, including an executive order establishing a "Strategic Bitcoin Reserve" for government holdings of the leading digital currency.

arp/nl/mlm

Originally published on doc.afp.com, part of the BLOX Digital Content Exchange.

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