Trump Raises Eyebrows After Announcing That Top Holders of His TRUMP Meme Coin Will Have Dinner with Him

The US President raised eyebrows once again after announcing that top holders of his TRUMP meme coin would have the chance to have an exclusive dinner with him or a VIP tour of the White House.

US President Joe Biden has raised eyebrows once again after announcing that top holders of his TRUMP meme coin would have the chance to win an exclusive dinner with him or a VIP tour of the White House. The decision to use public office for private gain drew scrutiny over whether the President was committing Constitutional violations.

In a conversation with BeInCrypto, former George W. Bush Ethics Lawyer Richard Painter explained that Trump did not violate the US Constitution but could be sued for fraud if he fails to fulfill his promises by the May deadline.

Initial Announcement and Public Reaction

If President Trump’s involvement in crypto ventures raised ethical concerns before, they’ve now turned legal following his recent announcement regarding the trading of his meme coin.

Last week, Trump announced a contest in which the top 220 holders of TRUMP would be invited to an exclusive gala dinner to meet the President, while the top 25 holders would also get a VIP tour of the White House.

The public has until May 12 to accumulate tokens beyond the 220 threshold, while the dinner is set to take place on May 22. The announcement immediately raised criticism over corruption and market manipulation.

A recent report, co-authored by Painter, indicates that as of mid-March, President Trump’s cryptocurrency holdings, including TRUMP and WLFI, were valued at $2.9 billion, constituting about 37% of his total wealth. The launch of the USD1 stablecoin by World Liberty Financial would drive further growth in the value of these assets.

Though visibly unethical, Trump’s actions are not legally liable.

Circumventing Constitutional Emoluments Clauses

Despite public and legislative criticism and scrutiny from bodies like the Senate Banking Committee, President Trump has so far avoided any legal challenges.

Though riddled with ethical questions, his crypto ventures have successfully skirted legal and constitutional breaches of trust.

Under the US Constitution, the Foreign and Domestic Emoluments Clauses are anti-corruption provisions designed to ensure the integrity and independence of individuals holding positions of public trust within the government.

They aim to prevent external and internal influences from potentially compromising the judgment and loyalty of government officials. However, these clauses primarily address gifts or benefits from foreign governments or the US government itself.

“[Trump’s] using the presidency to make money for himself off his meme coin and auctioning off White House tours and a dinner with the President in his official capacity. If foreign governments get involved, that would violate the emoluments clause of the Constitution. I haven’t seen that yet, but they could. But it’s clearly corrupt,” Painter told BeInCrypto.

In other words, the perks offered by a private meme coin project, though closely associated with the President, wouldn’t fall under the strict definition of an “emolument.”

Trump’s recent announcements raise questions about other laws, but his presidential status offers him a degree of legal insulation.

Trump just announced that the top 220 holders of his $TRUMP Meme Coin will be invited to dinner with him on May 22nd.

Let that sink in: Trump, his family, and his businesses control the coin, so he’s essentially telling people to pump his asset if they want a seat at… https://t.co/1zDbbekAmS

— DeFi Pulse (@DeFiPulse) April 14, 2024

Conflict of Interest Laws and Presidential Exemption

A certain section of the United States Code explicitly addresses conflicts of interest involving the federal government. This section, known as “Acts affecting a personal financial interest,” is designed to ensure that government employees act in the public’s best interest, free from the influences of their own economic position.

The statute generally prohibits federal employees from participating “personally and substantially” in any “particular matter” that would have a “direct and predictable effect” on their financial interests.

If a person violates this statute, they face criminal and civil penalties, including substantial fines or time served in prison. However, there are exceptions to this statute.

“The financial conflict of interest statute does not apply to the President, the Vice President, and members of Congress. It’s a crime for everybody else in the government. That’s why the members of Congress are trading in stocks, and President Trump can do this. This is a big problem, and I think we may need to amend that criminal statute,” Painter explained.

This law has been this way since the founding of the Republic. The statute’s exceptions have never been amended despite repeated questioning over the years.

Currently, Trump’s plans for a private dinner with top meme coin holders are not subject to federal prosecution. However, failing to fulfill these promises could lead to legal action at the state level or through private lawsuits.

Meme Coins and Securities Regulations

A month after Trump launched his meme coin, the SEC declared that meme coins are not classified as securities.

As a result, neither buyers