As President Donald Trump prepares to host a high-profile gala dinner for top investors of his meme coin, Congresswoman Maxine Waters (D-CA) has introduced a new bill aimed at banning public officials from holding controlling stakes in digital assets.
New Legislation Targets Politically Linked Crypto Holdings
Unveiled on May 22, the Stop Trading, Retention, and Unfair Market Payoffs in Crypto Act of 2025 seeks to prohibit presidents, vice presidents, members of Congress, and their families from owning significant portions of any digital asset that allows them to influence its function or value.
Waters, the ranking Democrat on the House Financial Services Committee, said the bill is a direct response to the growing overlap between politics and crypto influence.
“Trump’s crypto dealings are the biggest abuse of power we’ve ever seen in the digital finance space,” Waters said. “This legislation ensures public office isn’t used to pump digital coins for personal gain.”
Fourteen other Democrats have joined her in sponsoring the bill, including key committee members Stephen Lynch and Brad Sherman.
Spotlight on Trump’s $TRUMP Coin Investor Gala
The bill arrives just as Trump hosts an exclusive dinner for the 220 largest holders of the $TRUMP token at his golf club in Virginia. The top 25 token holders will also get access to a private reception and a behind-the-scenes tour.
Ethics watchdogs have raised red flags over the event, warning that foreign entities could be using the token to purchase access to the sitting president.
The event marks an unprecedented blending of cryptocurrency and campaign access, further intensifying the crypto-policy divide between Democrats and Republicans.
Will the Bill Pass?
Despite a strong push from Democrats, Waters’ proposal faces long odds in the GOP-controlled House. But even if it doesn’t pass, the legislation adds to mounting political scrutiny over how digital assets may be weaponized in campaign finance.
“If Republicans refuse to act, then they’re complicit,” Waters warned. “The line between crypto innovation and corruption is getting thinner by the day.”
