Charles Hoskinson speaks up and his tone is harsh. The founder of Cardano believes that the crypto policy of the Trump administration has placed the American industry in a worse situation than during the Biden era. The approach he criticizes seems opportunistic, politicized, and destructive to any attempt at bipartisan regulation.
Presidential memecoins as a breaking point
For Hoskinson, the turning point is clear. The optimism following Donald Trump’s election in late 2024 quickly vanished with the launch of the Trump Coin, just before the inauguration. According to him, this choice sent a disastrous signal.
His main criticism is not the existence of a memecoin per se, but the fact that the initiative came directly from the presidential sphere. While speculative platforms launch these types of tokens without institutional pretension, the American administration, according to Hoskinson, ‘institutionalized extraction’. The result: a project perceived as a value-capturing machine rather than one that structures the ecosystem.
At least partially vindicating him, since its launch, the Trump Coin has lost over 80% of its value, leaving many individual investors in the lurch and fueling a wave of mistrust towards the entire memecoin segment.
A closed regulatory window
According to Hoskinson, the damage goes beyond financial losses. He believes that these initiatives sabotaged a historic opportunity for regulatory reform. In early 2025, conditions were ripe for advancing landmark legislation on a bipartisan basis.
Without these politically charged memecoins, he argues the two major legislative projects could have succeeded. Instead, the financial ties between Trump and his crypto activities alienated some Democrats, turning regulation into an ideological battleground.
The conclusion is stark: crypto has once again become a divisive issue, where it could have established itself as a neutral infrastructure serving economic innovation.
An industry now politicized
Hoskinson warns of a deeper risk. By associating crypto with a single political figure, the administration has alienated nearly half the country. In the collective imagination, especially on the left, crypto is no longer seen as a technology, but as a tool for wealth transfer benefiting one faction.
This extreme politicization profoundly weakens the industry. It complicates dialogue with regulators, fosters suspicion, and reinforces the idea that crypto is inherently corrupt.
A lack of structure and governance
Beyond memecoins, Hoskinson denounces a total lack of method. He argues that the administration has not established a serious framework to consult the industry or define a coherent vision. Instead, he describes a chaotic environment dominated by political donations and power struggles.
He also recounts being taken by surprise when the ADA token was cited as a reserve asset, without any prior consultation. A situation he deems dangerous as it exposes unconsulted actors to future political suspicions.
A compromised regulatory future
Hoskinson’s verdict is pessimistic. He believes the window for clear regulation is now closed for several years. Crypto, he says, has been ‘weaponized’, turned into a political weapon without leadership or accountability.
His message is clear: by blurring industrial strategy with political opportunism, the Trump administration has severely weakened the American ecosystem. And this time, the consequences could be felt well beyond 2026.
