Cardano's Charles Hoskinson Blames US Regulators For Dubai’s Rise As A Global Crypto Hub

As Dubai marks the milestone as the world’s largest licensed virtual assets market, Charles Hoskinson has blamed US authorities for driving capital and talent abroad. Before the Trump administration, a vicious crypto crackdown by the US Securities and Exchange Commission (SEC) and heightened enforcement action by other regulators stifled Web3 innovation.

US Is Reaping The Consequences Of Its Crypto Crackdown, Says Charles Hoskinson

Cardano founder Charles Hoskinson has revealed that the US is playing catch-up to other jurisdictions in terms of digital asset adoption and trading volumes. According to an X post, Hoskinson disclosed that the impressive milestones racked up by Dubai’s cryptocurrency ecosystem could have easily been achieved in the US.

Hoskinson’s comments come on the heels of an announcement by Dubai’s ruler, Sheik Mohammed bin Rashi Al Maktoum, that the emirate’s digital asset trading volumes have surpassed $600 billion since the start of 2025. Maktoum added that Dubai is now the world’s largest licensed virtual asset market, dwarfing its closest competitor by a significant margin.

Maktoum noted that Dubai’s rise as a virtual asset hub is intricately linked to the launch of the Dubai Virtual Assets Regulatory Authority (VARA) back in 2022. As part of its objectives, VARA focused on the licensing and regulation of virtual asset service providers, while unveiling administrative rules for the industry.

Apart from establishing a regulatory authority, Dubai floated a comprehensive legal framework to provide legal clarity to sector players. The combined effect of VARA and clear rules attracted a raft of global service providers to set up shop in the Emirate, making the UAE a leading hub for cryptocurrencies.

“Three years ago, we made the decision to establish a new authority, the Dubai Virtual Assets Regulatory Authority, under the supervision of Maktoum bin Mohammed,” said Maktoum. “Today, Dubai leads as the world’s largest licensed virtual assets market, with trading volumes exceeding 2.5 trillion AED since the start of the year.

Meanwhile, Charles Hoskinson fired a salvo at US regulators during the Biden administration for tightening the screws on cryptocurrencies, while Dubai was simultaneously opening its doors to investors. At the time, the Gary Gensler-led SEC instituted enforcement actions against leading cryptocurrency firms while the ambiguity over securities and commodities plagued the industry.

“Almost all of this business could have been American,” said Hoskinson. “Real numbers and real consequences to the prior regime’s regulatory crackdown and the continued uncertainty legislative obstruction creates.”

Despite the hawkish stance of the previous government, the Trump administration has made significant progress with cryptocurrencies. In mid-2025, the government passed the GENIUS Act into law, officially recognizing stablecoins with Trump disclosing plans to make America the “crypto capital of the world.”