Bitcoin News Today: Hoskinson Slams Trump Crypto Moves for Muddying Regulatory Waters

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Charles Hoskinson, founder of Cardano, has criticized President Donald Trump's approach to cryptocurrency, calling it "frustrating" and politically polarizing. Hoskinson, in an interview with Decrypt, argued that Trump's personal crypto ventures, including a meme coin and a crypto project called World Liberty Financial, have muddied the waters for the industry. The move, he said, turned crypto into a partisan issue, undermining bipartisan efforts to establish clear regulatory frameworks according to a recent report.

Trump launched his meme coin shortly before re-entering the White House, a decision that Hoskinson claims transformed public perception of crypto. "It went from 'crypto is bipartisan' to 'crypto equals Trump equals bad, equals corruption,'" he said. The move has been particularly damaging as it provided critics an easy political attack vector ahead of the 2026 midterm elections according to market analysis.

Hoskinson added that Trump's actions blurred the line between policy and personal interest, potentially causing long-term damage to the industry's credibility in Washington. He criticized the timing of Trump's crypto ventures, arguing that launching personal projects before establishing a regulatory framework was misguided. "You create the framework and then do that thing in honor of that framework," he explained in a recent interview.

The Strategic Bitcoin Reserve and Criticism from the Industry

Following his election win, Trump announced plans for a Strategic Bitcoin Reserve, including Bitcoin and other major cryptocurrencies. However, Hoskinson was critical of the proposal to include altcoins, arguing that government involvement in selecting specific cryptocurrencies could distort the market. "If you're going to do it, just keep the Bitcoin you've seized," he said in a recent commentary.

Hoskinson's public criticism reportedly led to his disinvitation from a private Mar-a-Lago dinner with Trump and other crypto executives. He claimed the inclusion of Cardano's token, ADA, in the proposed reserve was an attempt to smooth over tensions rather than a genuine policy decision. "They threw in ADA because they felt bad," he said according to industry sources.

How Markets Reacted and What Analysts Are Watching

The crypto market has been mixed in its response to Trump's policies. While some see the pro-crypto rhetoric and regulatory rollbacks as positive, others, like Hoskinson, remain skeptical. Despite the initial surge in ADA's price following its inclusion in the proposed reserve, the token has since seen a significant decline, reflecting broader market uncertainty.

Market observers note that Trump's return to the White House initially raised expectations for a pro-crypto environment. However, the market is now only 20% of its peak under the Biden administration, raising questions about the sustainability of the bullish sentiment. Analysts like Ran Neuner argue that the market is "broken," with a disconnect between fundamentals and prices despite favorable macroeconomic conditions.

Risks to the Outlook

The debate over the state of the crypto market is intensifying as policymakers and investors grapple with the implications of Trump's approach. U.S. Senator Elizabeth Warren has called for a probe into decentralized finance (DeFi) platforms and their potential ties to Trump's business interests, including a crypto project called World Liberty Financial. This move highlights growing concerns over regulatory clarity and the risk of political influence in crypto policy.

Meanwhile, the U.S. crypto industry is celebrating key legislative and regulatory wins under Trump's administration, including the SEC's decision to rescind stringent crypto accounting guidance and the approval of a landmark law for dollar-pegged crypto tokens. However, these victories come with caveats, as critical market structure legislation and regulatory carve-outs remain unresolved.

What This Means for Investors

For investors, the current climate suggests a cautious approach. While institutional adoption of crypto has increased, particularly in Bitcoin and Ethereum, altcoins have struggled to gain traction. The market has essentially split into two segments: institutional-grade crypto with lower volatility and attention-driven crypto with rapid price swings according to market analysis.

Analysts warn that the old playbook no longer applies as crypto moves through a post-institutional phase. Investors are advised to focus on understanding liquidity flows and macroeconomic signals rather than relying on historical patterns. As the market continues to evolve, the challenge for investors will be navigating the new landscape defined by regulatory uncertainty, structural shifts, and political dynamics.