Trump's launch of the meme coin triggered the moment when U.S. crypto policy was 'politicized'.
Cardano founder Charles Hoskinson recently fired back, directly pointing out that President Trump's crypto actions not only plunged the industry into a political storm but also instantly shattered the originally weak but bipartisan regulatory consensus. In an interview with Decrypt, he frankly stated that many industry players are afraid to publicly criticize, saying, 'That's a high-voltage line; you can't touch it because you'll lose the opportunity to engage with the core of policy.'
The starting point of the event was Trump launching his own meme coin on the eve of his return to the White House. Hoskinson believes that this timing not only blurred the lines between policy and personal interests but also turned the already fragile U.S. crypto legislative process into a partisan issue.
"Once meme coins were launched, cryptocurrency went from 'bipartisan' to 'crypto = Trump = corruption,' directly becoming the ammunition for the 2026 midterm elections." Hoskinson bluntly stated that this makes legislative progress more difficult and gives critics an advantage.
In addition to meme coins, the World Liberty Financial launched by the Trump family and business partners before the 2024 election has also been criticized by Hoskinson for its inappropriate timing. He believes that the president's business activities cannot be separated from political effects, "You need to have a regulatory framework before engaging in business activities, not the other way around." He emphasized that the opposition is not to Trump's entrepreneurship but to the timing and impact.
The line between regulation and private interests is blurred, Hoskinson: This will harm the entire industry.
Hoskinson believes that Trump's actions have made the industry's position in Washington more awkward because companies pushing for regulation must face the question, "Are you speaking for Trump's interests?" Some in the industry have even advised him not to speak publicly to avoid "losing the ticket to engage with the government."
He also warned that Washington's view of Trump's personal involvement in the cryptocurrency business is fraught with political risk. Once power changes hands, related projects could be investigated or subpoenaed, "You have created a massive market disruption that may be subpoenaed during a regime change." Hoskinson believes these risks will undermine the credibility that the industry has worked hard to establish in its early stages.
In the regulatory formulation process, Trump's business plans have instead become the focus, causing discussions about cryptocurrency regulation to diverge. He emphasized that cryptocurrency regulation should be based on systems rather than personal interests, "Don't launch new coins without a framework; establish a framework first, then act according to the rules."
Opposing the expansion of America's "cryptocurrency reserves," Hoskinson: The government should not choose market winners and losers.
After taking office, the Trump administration announced that it would establish a "cryptocurrency reserve" to fulfill its commitment to the cryptocurrency community. This reserve would include various assets such as Bitcoin ($BTC), Ethereum ($ETH), Solana, XRP, Cardano, and would use previously seized bitcoins as part of the "strategic bitcoin reserve."
Hoskinson opposes this practice, believing that the government should not buy or hold individual altcoins, as it would mean the government is choosing market winners and losers. "If you really want to do it, just keep the seized bitcoins and don't expand to other currencies."
Currently, the U.S. government has accumulated about 200,000 bitcoins due to law enforcement actions, valued at approximately 17.1 billion dollars. He pointed out that such large-scale holdings have huge value fluctuations, and once the government intervenes, it will create new market uncertainties.
Although blunt criticism may cause him to "forever lose contact with decision-makers," Hoskinson stated that he still chooses to express his views publicly. "Even if it can influence a bit of policy, it is not worth exchanging integrity for it; one should speak the truth."
This controversy not only reflects the cryptocurrency industry's gradual involvement in America's highly polarized politics but also highlights how cryptocurrency policy will be redefined between politics, business, and regulation after Trump's return to the White House.
This content was generated by Crypto Agent compiling various information and reviewed and edited by Crypto City. It is still in the training stage and may contain logical biases or information errors. The content is for reference only and should not be considered investment advice.
'Is it worth losing influence to speak the truth? Cardano founder: Trump has plunged the industry into a political storm.' This article was first published in 'Crypto City.'
