Charles Hoskinson criticizes Trump's crypto policy and describes it as harmful

Source: CritpoTendencia Original Title: Charles Hoskinson criticizes Trump’s crypto policy and calls it harmful Original Link: Donald Trump’s government policy towards cryptocurrencies has very harmful side effects for the ecosystem, says Charles Hoskinson. For the founder of Cardano, the emergence of the magnate’s figure becomes a disruptive element for the decentralized nature of cryptocurrencies. This has led to politicization that alienates half of the United States population.

The controversial crypto developer emphasizes that a large part of the population sees cryptocurrencies as underlying elements of Trump’s agenda. This causes the crypto world to be under Trump’s government in a worse position than it was under Biden’s administration.

In his view, Trump’s approach turned into an extraction activity towards the world of cryptocurrencies. Although he admits that the rise of the Republican magnate generated optimism, the extractivist vision became evident with the launch of memecoins by the president and his wife. “The first thing he did was launch Trump Coin, and it seemed as if extractivism had been institutionalized,” he lamented.

Charles Hoskinson was one of the supporters of Trump’s 2024 campaign, but he quickly began to critically address the new government’s approach to the crypto world.

Politicizing cryptocurrencies causes half of the population to perceive this market as part of Trump’s extremist agenda. This leads potential users and investors to distance themselves from the ecosystem, according to the expert.

Trump’s policy spoiled a possible bipartisan-supported regulation, according to Hoskinson

Hoskinson insisted that Trump’s initial support for cryptocurrencies was spoiled after the launch of the family’s memecoins. This was deepened with the Trump family’s involvement in numerous projects and investments that made a conflict of interest evident. The latter refers to a scenario where a politician promotes laws based on the needs of their own investments.

For example, Trump’s insistence on accelerating the approval of the stablecoin project, Genius, culminated in the launch of USD1. This is a stablecoin from the WLFI protocol in which the president’s family has significant participation.

DeFi, memecoins, stablecoins, digital mining, and even the prediction market are some of Trump’s crypto ventures. This quickly became part of the agenda of Trump detractors, especially in Congress. Many Democratic representatives who could support bipartisan regulation chose to distance themselves from this Trump advance.

Such ventures, especially in the meme sector, became negative catalysts. Since the Trump family launched these tokens, the memecoin market sharply deflated, losing more than 70% in 2025. Hoskinson criticizes that without Trump’s extractivist policy, the Clarity regulation would already have been approved.

“Cryptocurrency regulation would have been inherently bipartisan,” he laments.

Long-term consequences

The unorthodox policies of the Trump administration will set a precedent in the country’s history. Congress and the two main parties will likely use this as an example to prevent future populist figures from entering the presidency.

The biggest problem for cryptocurrencies could be the full support for Trump. If the MAGA project ends badly and becomes a stain in the political trajectory of the U.S., cryptocurrencies will carry its image permanently. In simple words, a large part of the population will see these assets as burdens of Trump’s agenda.

However, Hoskinson’s criticisms should not be taken as prophetic. It is also possible that Trump’s approach ends well for cryptocurrencies if his policies prove to be correct.