Cardano Founder Slams Trump Over U.S. Crypto Policy Shift

Cardano founder Charles Hoskinson criticized U.S. President Donald Trump’s administration for worsening the crypto environment compared to the Biden era. He highlighted the politicization of digital assets and the rise of speculative memecoins like Trump Coin as major concerns according to analysis.

Hoskinson said Trump-related memecoins created a negative precedent and slowed momentum for key legislation like the CLARITY Act. He warned that political branding in crypto harms trust and innovation.

The founder also questioned the leadership of Trump’s crypto adviser, David Sacks, urging him to resign if the CLARITY Act fails to pass by Q1 2026. He argued that uncoordinated guidance from the administration has delayed critical regulatory progress.

Why Did the Crypto Policy Shift Occur?

Hoskinson pointed to the launch of Trump Coin as a turning point in U.S. crypto policy. He said the memecoin created the perception that the industry was being used for political gain, which eroded bipartisan support for regulatory legislation.

The founder claimed that the Biden administration, while flawed, provided clearer signals for the industry. He argued that Trump’s approach, by contrast, turned technical policy discussions into partisan conflicts.

How Did the Market Respond?

Cardano’s ADA token fell below $0.39 on January 13, 2026, marking a 6% weekly decline. The founder attributed the drop to regulatory delays and lack of investor confidence.

Industry experts and advocacy groups have also raised concerns about the potential economic impact of stalled crypto legislation. Community banks, for instance, warn that stablecoin rewards could shift funds away from traditional financial institutions.

What Are Analysts Watching Next?

Analysts are now focused on the Senate Agriculture and Banking Committees’ upcoming vote on the CLARITY Act. If passed, the bill could clarify the roles of the SEC and CFTC in regulating digital assets.

Hoskinson emphasized the need for neutral, industry-driven regulation rather than politically motivated decisions. He called for renewed collaboration between lawmakers, developers, and investors to stabilize the market.

The U.S. crypto sector remains in a state of uncertainty as the 2026 midterm elections approach. With Democrats potentially regaining control of the House, the future of key regulatory bills is uncertain.