U.S. President Donald Trump’s upcoming gala dinner for $TRUMP meme coin investors has drawn fierce backlash from Congresswoman Maxine Waters (D-CA), who is spearheading new legislation to prevent political profiteering from digital assets.

Crypto Ownership Limits Proposed for Public Officials

Waters introduced the Stop Crypto Corruption Act on May 22, just ahead of Trump’s scheduled gathering of the top 220 $TRUMP investors.

The bill would prohibit any sitting official—or their immediate family—from holding enough of a digital asset to directly control or influence its governance.

“No public servant should be able to enrich themselves through tokens they can manipulate,” Waters stated.

With 14 co-sponsors from the Democratic side of the House Financial Services Committee, the legislation aims to block what Waters described as “the exploitation of public office for crypto gain.”

Controversy Over Trump’s $TRUMP Token Dinner

At the center of the uproar is the Trump-hosted event, taking place at his own Trump National Golf Club. The gala reportedly includes VIP access for the largest investors, with some seats estimated to be worth millions.

Critics have warned that the event creates the illusion—or reality—of buying political access through token holdings, particularly since the $TRUMP coin has seen surging interest ahead of the 2024 election.

Waters said the timing of the gala and the growing meme coin ecosystem tied to political figures is a warning sign for lawmakers.

Crypto Ethics Bill Highlights Growing Regulatory Divide

The “Stop Crypto Corruption” bill is unlikely to see bipartisan support in its current form, but it adds to a growing debate over digital assets, political power, and the need for clearer regulations.

“We’re heading down a dangerous path where coins are being used as influence chips,” Waters said. “Congress must draw a line before crypto becomes the next campaign finance scandal.”