Cardano founder Charles Hoskinson criticizes the Trump administration’s crypto policies, warning of politicization, memecoin risks, regulatory failures, and growing losses across the U.S. digital asset sector.
Cardano founder Charles Hoskinson sharply criticized U.S. President Donald Trump’s crypto policies during a recent podcast. He said the administration made the digital asset environment worse than it was during the Biden era.
Moreover, Hoskinson believed political decisions led to a loss of trust, slowed down the legislation process, and exacerbated market instability throughout the United States.
Hoskinson Says Trump Coin Triggered Policy Breakdown
Hoskinson was Input Output Group’s CEO and called Trump Coin an early policy failure. He postulated that the memecoin represented institutionalized extraction as opposed to innovation. Furthermore, he said government involvement went against the principles of decentralization and fostered speculative behaviour in retail-driven markets throughout.
Cardano founder Charles Hoskinson criticized the Trump administration for worsening the U.S. crypto environment compared to the Biden era by politicizing the sector and institutionalizing “predatory behavior” via memecoins like Trump Coin. He argued these actions destroyed the…
— Wu Blockchain (@WuBlockchain) January 13, 2026
According to Hoskinson, excessive memecoin hype was caused by the launch of Trump Coin in January 2025. As a result, many utility-free tokens appeared in the market at a fast pace. Data shows that the Trump Coin fell over 80% from its high. As a result, many investors lost large sums of money in a short matter of months.
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In addition, the memecoin crash hurt bipartisan momentum for regulation, Hoskinson said. He said the GENIUS Act and CLARITY Act lost support in early 2025. Moreover, he pointed fingers at a lack of consultation with the industry and unclear frameworks that stalled legislative progress in Washington.
Hoskinson also took issue with the proposed U.S. strategic crypto reserve. He argued about adding assets such as ADA, XRP, and Solana because it causes unfair market distortion. Therefore, he warned selection of assets by the government undermines neutrality and decentralization, which was the original definition of the crypto sector.
Meanwhile, Hoskinson was worried about growing financial centralization. He said policies are progressively inclined toward institutions such as BlackRock and Goldman Sachs. Consequently, he said retail investors are less protected and influential. This shift, he said, is opposed to the founding objective of crypto, which is financial accessibility.
Market data reflects more general uncertainty in the major digital assets. Cardon’s ADA was trading at around $0.39 on January 13, 2026. The token declined 3.68% in 24 hours. Further, ADA lost more than 6% weekly and tested support of around $0.38.
Regulatory Delays Deepen Market Pressure
Hoskinson struck directly at leadership in the administration’s crypto advisory structure. He demanded the resignation of David Sacks if the CLARITY Act fails by Q1 2026. Furthermore, he blamed uncoordinated guidance for delays in legislation and setbacks in the market.
He also identified personal financial consequences related to extended uncertainty. Hoskinson said he lost more than 2.5 billion dollars over 4 years. He blamed unclear regulations, speculative cycles, and policy-driven volatility in U.S. markets.
Taking one more step, Hoskinson compared the situation now with the Biden administration period. He contended that previous frameworks provided better enforcement signals. While flawed, he said previous policies enabled positive bipartisan dialogue before political change disrupted progress.
Moreover, Hoskinson emphasized the need for regaining trust through consistent regulation. He urged lawmakers to disassociate innovation from political branding. Therefore, he called for renewed engagement with developers, investors, and policymakers to stabilize the ecosystem.
In conclusion, Hoskinson cautioned about the dangers of politicization over the long-term of U.S. competitiveness in digital assets. He contended that failure to pass the GENIUS and CLARITY Acts may increase the rate of capital flight. Therefore, regulatory clarity continues to be important as liquidation risks persist with volatile crypto markets.
Source: https://www.livebitcoinnews.com/cardano-founder-slams-trump-over-u-s-crypto-policy-shift/