Daniels was taken into custody and charged with three misdemeanor sex offenses after she fondled undercover cops at a strip club in Columbus, OH.
Attorney Michael Avenatti said Thursday the arrest was politically motivated and "reeks of desperation".
Police said Thursday they've made numerous arrests under a law regarding illegal sexually oriented activity in a sexually oriented business.
She vowed to donate "all tips" to the lawyers' fees for two other dancers arrested with her.
Daniels, real name Stephanie Clifford, is suing Trump and his former personal lawyer Michael Cohen to nullify a 2016 non-disclosure agreement preventing her from speaking out about an alleged affair she says she had with Trump in 2006. "We will fight all bogus charges", Avenatti said on Twitter. The Community Defense Act, a law in OH, prohibits anyone from touching a nude or semi-nude dancer. Avenatti said in another tweet, appearing to suggest a set-up.
During Daniels's 11:30 p.m. performance, the report states, people in the audience began throwing dollar bills at Daniels. This was a setup & politically motivated. (By their own admission, the cops approached the stage after Daniels had started dancing and touched another patron, putting them in position to be touched by her.) More importantly, this particular law is nearly never enforced: The county sheriff told the Columbus Dispatch that, dating back to 2007, the number of charges filed under it is exactly ...
Police say after observing these interactions, two detectives and one officer approached the stage, at which point Daniels allegedly performed similar acts on them.
A Columbus police spokeswoman did not immediately respond to requests for comment on the arrest. After the charges were dismissed, Avenatti said Daniels would seek to perform at another club in Columbus on Thursday night.
A spokesperson for the Franklin County Sheriff's Department told CBS as of early Thursday morning, Daniels was not being held there.
Police in Ohio's capital city say the arrest of porn star Stormy Daniels was part of a long-term human trafficking investigation.
Ms Daniels says she was paid $130,000 (£98,000) shortly before the 2016 presidential election to keep quiet about her alleged sexual encounter with Mr Trump.
Trump admitted in May that he reimbursed Cohen for the payment, although he said at the time he did not know what it was for.