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.
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.
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.
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.
When an industry becomes tied to a single political figure, lawmakers tend to evaluate it through a partisan lens rather than on technical or economic merits. This often leads to stalled hearings, fewer compromises, and delayed regulatory clarity for companies operating in the U.S.
Prolonged political gridlock could push startups, developers, and capital to jurisdictions with clearer and more stable regulatory frameworks, such as parts of Europe or Asia. This risks weakening the U.S. role in shaping global crypto standards.
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