US President Donald Trump’s public crypto moves have dramatically changed the way lawmakers and industry leaders view digital assets, according to Cardano founder Charles Hoskinson.
He claims that a memecoin launch linked to the president, just days before he returned to the White House, helped turn a once-bipartisan push for crypto ground rules into a political hot potato.
The political outlook is changing rapidly
According to Hoskinson, crypto had gained bipartisan momentum and a bill known as the Clarity Act seemed likely to gain broad support – with around 70 senators expected to vote for it at any given time.
That momentum faded when the market saw the president enter the arena with his own token, Hoskinson said, making it politically risky for many Democrats to support crypto measures.
CHARLES HOSKINSON: CRYPTO REGULATION DERIVED BY TRUMP MEMECOIN
Charles Hoskinson says crypto was on track for a bipartisan regulatory victory, until TrumpCoin changed the outlook.
According to Hoskinson, the CLARITY Act is expected to pass with broad support in late 2024. About 70… pic.twitter.com/zpA7TRilqV
– CryptosRus (@CryptosR_Us) December 19, 2025
Strong language
Hoskinson called the topic “third rail,” meaning politicians and many industry figures avoid it because it carries big political risks.
He told reporters that, in his opinion, the launch of memecoin changed the way the public and lawmakers associated crypto with a political figure, a change that made it more difficult to develop clear rules.
Silence inside the industry
Reports have revealed that many crypto executives are keeping their distance from public criticism. Hoskinson said industry executives feared losing access to political negotiations or being excluded from private meetings if they spoke out.
That concern, he argued, led to a muted response from the industry even as the debate over the rules grew more urgent.
Cardano Founder Charles Hoskinson. Image: Piaras Midheach/Sportsfile/Getty Images
Timing and order of rules raise concerns
Hoskinson also criticized previous projects linked to the president, including World Liberty Financial, and questioned the timing of launching a commercial crypto product when influence on policy was possible.
“You shouldn’t first launch a product and then make rules,” he said, arguing that regulations should come before big political players push private companies into the market.
What this means for lawmakers
According to reports, the fallout has made committee work and markups more difficult. Lawmakers who once saw an opportunity to write clear rules now face a higher political cost if they appear to side with a high-profile figure. This dynamic could push the schedule for formal votes and hearings further, officials and analysts say.
Hoskinson framed his criticism as a warning about mixing personal enterprise with political power at a time when the industry needs stable rules.
It is not certain that his point of view will change the debate. What is clear is that tying crypto to a single political brand has complicated efforts to secure broad legal rules, which could slow down a process that many in the market hoped would be simple.
Featured image from Getty Images, chart from TradingView
Editorial process as Bitcoinist focuses on providing thoroughly researched, accurate and unbiased content. We follow strict sourcing standards and every page undergoes careful review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance and value of our content to our readers.
