Trump Meme Coin Sparks Political Ethics Debate Amid Crypto Regulation Loopholes
A political controversy is brewing over a meme coin linked to former U.S. President Donald Trump, raising serious questions about the use of cryptocurrency in campaign financing and political influence. Former UK Minister of State Rory Stewart has warned that the coin may serve as a backdoor channel for untraceable political contributions—potentially sidestepping longstanding disclosure rules.
Speaking on his podcast The Rest is Politics, Stewart described Trump’s crypto venture as a “disgusting” form of corruption, suggesting that the meme coin is being used to curry favor with the former president in exchange for potential political and financial advantages.
“He doesn’t declare any of the money that comes in, he doesn’t declare any of the revenue he gets out of it,” Stewart said, describing the coin as “an amazing way of making campaign contributions.”
Cryptocurrency, Influence, and Transparency
The heart of Stewart’s concern lies in the lack of regulation in the U.S. crypto space. As meme coins like TRUMP are not categorized as securities, they fall outside the purview of many financial disclosure laws. That opens the door, critics say, for powerful donors—corporate or foreign—to covertly support Trump’s political aspirations without accountability.
Stewart pointed to a $20 million investment in TRUMP tokens by Freight Technologies Inc., a publicly listed shipping company. The company’s CEO, Javier Selgas, described the move in official SEC filings as a “sensible business decision” tied to advocacy for favorable trade policies. According to Stewart, this kind of disclosure, while legal, highlights a broader issue: how digital tokens can be used for lobbying under the guise of investment.
Private Dinners and Public Concerns
Adding fuel to the controversy is a promotional offer associated with the TRUMP token. The top 220 token holders by May 22 will be invited to a private dinner with Trump, and the top 25 will receive an exclusive White House tour.
Such access has drawn comparisons to earlier reports about high-dollar Mar-a-Lago events, where individuals could reportedly pay up to $5 million for face time with the former president. Stewart argued this represents a modern form of political patronage—one that bypasses transparency safeguards.
Legal Loopholes or Political Grey Zone?
Former White House ethics lawyer Richard Painter weighed in on the debate last week, stating that while the setup may be ethically questionable, it does not necessarily violate U.S. law. As the SEC currently does not classify meme coins like TRUMP as securities, federal finance rules do not apply.
However, Painter noted that if promised rewards like the exclusive dinner are not delivered, Trump could face fraud allegations from state authorities or civil plaintiffs. The broader concern, he said, is the absence of legal guardrails for digital assets in political contexts.
Regulatory Freeze Raises Further Red Flags
Stewart also criticized Trump’s history of dismantling regulatory safeguards. He pointed out that during Trump’s presidency, several protections—such as the Foreign Agents Registration Act, the Foreign Corrupt Practices Act, and consumer protection laws—were either paused or weakened.
“The protections the U.S. set up to deal with this... have been suspended,” Stewart said. “That’s made it incredibly easy for individuals or foreign entities to funnel money and influence through crypto without accountability.”
The Road Ahead for Crypto and Campaign Finance
The TRUMP meme coin saga exposes a glaring blind spot in U.S. campaign finance oversight. As digital assets continue to evolve, the ethical and legal frameworks meant to preserve transparency in politics appear outdated and under-equipped.
This latest controversy underscores the urgent need for comprehensive regulation—especially as cryptocurrency and politics become increasingly intertwined.