Charles Hoskinson Slams Trump’s Crypto Moves, Warns of Political Damage to Industry
Cardano founder Charles Hoskinson just threw a political grenade into the crypto arena. His target? The former president's recent embrace of digital assets. Hoskinson warns these maneuvers aren't just policy—they're a potential poison pill for the entire sector.
The Political Crossfire
Hoskinson argues that tying crypto's future to any single political figure is a dangerous game. It invites partisan backlash and turns technological innovation into a political football. The industry, he insists, needs regulatory clarity, not campaign slogans.
When Politics Meets Protocol
The core fear is that short-term political gains could inflict long-term damage. If crypto becomes a wedge issue, it risks alienating half the electorate and inviting retaliatory regulation from the opposing side. It's a classic case of Wall Street's old game—sacrificing stability for a quick headline pop.
Hoskinson's warning cuts through the hype: true adoption requires building bridges, not burning them. The industry's survival depends on outlasting political cycles, not betting on them. After all, in the high-stakes world of crypto, the most volatile asset isn't Bitcoin—it's political favor.
Cardano founder Charles Hoskinson has openly criticized President Donald Trump’s involvement in cryptocurrency, saying it created confusion, fear, and political damage for the industry at a critical time.
While many crypto leaders stayed silent, Hoskinson says most are afraid to speak openly.
Hoskinson Slams Trump’s Crypto Moves
In a recent interview, Hoskinson described Trump’s crypto actions as “frustrating” and called the topic a “third rail,” meaning it’s something people avoid discussing due to political risk.
He pointed to Trump’s decision to launch a memecoin earlier this year, just days before returning to the WHITE House, as a major turning point for the industry.
Before the launch, crypto was gaining support from both parties, and the CLARITY Act was expected to pass with nearly 70 senators in favor. That changed quickly after Trump’s memecoin entered the market
Hoskinson says crypto quickly became tied to Trump’s political image, making it harder for Democrats to support regulation. Instead of focusing on innovation, crypto turned into a political issue, slowing progress on clear rules.
CHARLES HOSKINSON: TRUMP'S MEMECOIN DERAILED CRYPTO REGULATION
Charles Hoskinson says crypto was on track for a bipartisan regulatory win, until TrumpCoin changed the optics.
According to Hoskinson, the CLARITY Act was expected to pass with broad support in late 2024. Around 70… pic.twitter.com/zpA7TRilqV
Bipartisan Support Quickly Turned Political
Once crypto became linked to Trump, Democratic lawmakers faced a dilemma. Supporting crypto legislation now risked being seen as endorsing TRUMP himself. As a result, the CLARITY Act lost its bipartisan image and became a political weapon ahead of the midterm elections.
Hoskinson believes this made it far harder for lawmakers to focus on policy. What was once a shared goal turned into a partisan issue almost overnight.
Fear Keeps Industry Leaders Silent
Hoskinson said many crypto leaders were warned to stay quiet, as speaking out could cost them access to policymakers or exclude them from key regulatory talks. This fear, he believes, has kept much of the industry silent.
He also criticized Trump’s earlier crypto project, World Liberty Financial, which launched during the election campaign. While Hoskinson said Trump has the right to invest in crypto as a private citizen, he questioned the timing of the move.
“You shouldn’t launch a product first and then make the rules,” Hoskinson said. “The rules should come first.”
Lastly, Hoskinson warned that mixing political power with personal crypto ventures could lead to future investigations if political leadership changes.
