Cardano Founder Charles Hoskinson Criticizes Trump’s Crypto Ventures as “Frustrating” for Policy Progress

Quick Breakdown

• Charles Hoskinson expressed frustration over Donald Trump’s decision to launch the World Liberty Financial (WLFI) token instead of focusing on legislative crypto reform.
• The Cardano founder warned that the former president’s direct involvement in a DeFi project could lead to increased partisanship and stall bipartisan crypto bills.
• Industry leaders are reportedly silent on the matter, according to Hoskinson, who believes many are afraid to criticize the move because of Trump’s political influence.

Cardano founder Charles Hoskinson has slammed President Donald Trump’s recent foray into decentralized finance (DeFi), calling the launch of the World Liberty Financial (WLFI) project a “frustrating” distraction that could hinder the industry’s push for regulatory clarity. Speaking at a recent industry event with DecryptMedia, Hoskinson argued that the crypto sector needs robust, bipartisan legislation rather than a high-profile, family-backed token venture. He noted that while Trump has positioned himself as a pro-crypto candidate, the actual implementation of his crypto strategy through a specific commercial project creates significant political hurdles for neutral policy-making.

Charles Hoskinson talks Trump’s meme coin, the president’s impact on crypto, and how the U.S. government ruined the supercycle:

“The minute that Trump Coin got launched. It went from ‘crypto is bipartisan’ to ‘crypto = Trump = bad = corruption.’” – @IOHK_Charles pic.twitter.com/ZnaevpXGpb

— Decrypt (@DecryptMedia) December 18, 2025

The criticism follows the October launch of the WLFI token sale, a project supported by Trump and his sons, which sought to raise $300 million. Hoskinson emphasized that the move has made it more difficult for lawmakers to support crypto-friendly bills without appearing to enrich a specific political figure. According to the Cardano chief, this dynamic risks turning digital asset regulation into a purely partisan issue, potentially alienating Democratic support for critical frameworks like the FIT21 bill.

Partisanship risks stalling legislative momentum

Hoskinson warned that the industry’s politicization is a “scary” prospect that could stall progress for years. He pointed out that the industry’s primary goal should be achieving a level playing field through common-sense regulations, such as the repeal of SAB 121, rather than seeking special favours or government-backed commercial ties. The Cardano founder highlighted that the sudden influx of political capital and speculation can be a “rib-crushing hug” for the market, disrupting natural cycles and introducing unnecessary volatility.

The frustration also stems from what Hoskinson describes as a wall of silence from other crypto executives. He suggested that many industry leaders are privately annoyed by the Trump family’s DeFi project but are reluctant to speak out publicly because of the former president’s potential return to the White House. This lack of transparency, he argued, prevents the industry from presenting a unified voice to Washington that prioritizes long-term innovation over short-term political gains.

Following a security breach caused by external phishing and third-party lapses, World Liberty Financial initiated a drastic emergency recovery plan to safeguard its ecosystem. The platform executed a $22 million token burn to neutralize stolen assets and implemented mandatory identity verification for users seeking to reclaim their funds. Beyond the technical fix, the text highlights a climate of regulatory pressure, as US officials investigate the project’s compliance with anti-money laundering laws and governance standards. Ultimately, the source details the firm’s attempt to restore investor confidence through aggressive security measures and strict transparency protocols before its official launch.

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