The intersection of the crypto industry and U.S. politics reached new heights this week. On Thursday night, former President Donald Trump hosted a private dinner at his Virginia golf club. The exclusive event gathered 220 top investors in the meme coin $TRUMP, sparking intense debates across the crypto world.
While many in the crypto space once saw Trump as a powerful ally, some now worry that his embrace of digital assets is driven more by personal profit than public policy.
A President, a Meme Coin, and a Luxury Dinner
The dinner event was invitation-only and included the largest holders of the $TRUMP token. The top 25 investors were granted private access to Trump himself. The top four received luxury watches—each worth $100,000—featuring crypto designs and Trump’s branding.
To many, the dinner felt less like a celebration and more like a transaction. Critics say it blurred the lines between Trump’s political influence and his personal business interests. Senator Richard Blumenthal, a Democrat from Connecticut, stated that the gathering effectively put “a ‘for sale’ sign on the White House.”
White House Press Secretary Karoline Leavitt attempted to distance the administration from the event, saying Trump was attending “in his personal time.”
$TRUMP: More Than Just a Meme
The $TRUMP coin was introduced three days before Trump’s 2025 inauguration during an event called the Crypto Ball near the White House. At the time, Trump described it as a fun way for his supporters to engage with his campaign.
Unlike typical meme coins, which are often jokes with no real use, $TRUMP offers tangible perks, most notably, access to Trump himself. This has made it a political tool and an investment product rolled into one.
However, after an initial surge in price, $TRUMP’s value dropped sharply. Despite the fall, its creators, including a Trump Organization-linked entity, have earned hundreds of millions of dollars in trading fees from the crypto industry.
The Trump Family’s Expanding Crypto Footprint
The $TRUMP coin isn’t the only crypto initiative linked to the former president. First Lady Melania Trump has her own meme coin. Meanwhile, Trump’s sons, Eric and Don Jr., announced plans to launch a crypto mining company.
The Trump family also owns about 60% of World Liberty Financial, a major crypto industry venture. This project launched its own stablecoin, USD1, pegged to the U.S. dollar. In a notable deal, an investment fund from the UAE is using $2 billion worth of USD1 to buy a stake in Binance, the world’s largest crypto exchange.
Stablecoins like USD1 earn revenue from interest on the assets backing them, such as U.S. Treasury bonds. This has made crypto one of the Trump family’s most profitable ventures.
From Critic to Crypto Crusader
Trump’s current stance on crypto is a far cry from his earlier views. In July 2019, while still president, he tweeted that cryptocurrencies were “not money” and had value “based on thin air.” He also warned that crypto could enable criminal activity.
Even in 2021, after leaving office, Trump told Fox Business that bitcoin “seems like a scam.”
That changed in May 2024. At a crypto industry event at his Mar-a-Lago resort, Trump began warming up to the industry. In June, he attended a high-profile fundraiser hosted by tech investor David Sacks in San Francisco.
By July, Trump was meeting with bitcoin miners. In August, he headlined a major crypto conference in Nashville, where he pledged to make the U.S. “the crypto capital of the planet.”
Today, Trump proudly declares, “I’m a big crypto fan. I’ve been that from the beginning.”
A Marriage of Convenience?
Trump’s crypto pivot has won him powerful allies. Elon Musk and David Sacks are both vocal supporters. Sacks now serves as the administration’s crypto policy czar. Several Cabinet members, including Commerce Secretary Howard Lutnick and Defense Secretary Pete Hegseth, are also strong crypto advocates.
Transportation Secretary Sean Duffy summed it up in a 2023 interview: “I don’t have faith in the dollar. I’m bullish on bitcoin.”
But Trump’s crypto involvement is not without controversy. Some of his biggest supporters in the industry have raised concerns.
“It’s distasteful and an unnecessary distraction,” said Nic Carter, a partner at Castle Island Ventures and a longtime Trump supporter. He added that Trump is “hugging us to death” with these personal crypto ventures. “We would much rather that he passes common sense legislation and leave it at that.”
Legal and Ethical Landmines
Since Trump returned to office, several legal actions against crypto companies have been dropped or stalled. One such case involved Justin Sun, a Chinese-born crypto mogul, accused of market manipulation and undisclosed celebrity endorsements.
Sun, who once paid $6.2 million for a banana artwork and then ate the banana, helped launch World Liberty Financial with a $75 million investment. He is also the largest known holder of $TRUMP tokens and attended Thursday’s dinner.
“I’m excited to connect with everyone, talk crypto, and discuss the future of our industry,” Sun posted on social media.
Many in the crypto industry are uneasy about the political risks. James Thurber, an ethics expert at American University, warned that Trump’s activities represent a “huge conflict of interest.”
“He’s becoming a salesman-in-chief,” Thurber said. “It’s risky, because they could all lose a lot of money.”
Political Impact and Policy Progress
Despite the drama, Trump’s presidency has pushed crypto issues to the forefront of national policy. He signed executive orders promoting blockchain innovation and even proposed creating a national bitcoin reserve.
In March, he hosted the first-ever White House crypto summit.
Meanwhile, a long-awaited Senate bill to define how digital assets are regulated has made progress. However, Democrats have tried to slow its advancement, citing Trump’s private dealings as a potential conflict.
Trump’s involvement in crypto has created both opportunity and uncertainty. For some, he is the political heavyweight who can finally legitimize the industry. For others, he is using that same industry for personal and financial gain.
Whether Trump proves to be a savior or a distraction for the crypto industry remains to be seen. But one thing is clear: under his influence, the lines between digital finance, personal fortune, and presidential power have never been blurrier.
