Hoskinson Breaks Ranks on Trump’s Crypto Play: “It’s the Third Rail”

Charles Hoskinson has warned that President Donald Trump’s direct involvement in cryptocurrency has created political and reputational risks the industry has been unwilling to confront. The Cardano founder said Trump’s actions, including the launch of a personal meme coin, have become an untouchable subject among crypto executives despite growing unease.

Hoskinson said criticism of Trump’s crypto strategy has effectively been suppressed within the sector, with industry figures warning that speaking out could cost them access to policymakers and legislative discussions. He described this dynamic as a powerful deterrent that has prevented open debate at a crucial time for regulation.

The launch of Trump’s meme coin, just days before his return to office, marked a turning point for US crypto politics, according to Hoskinson. He said the move undermined years of bipartisan progress by reframing cryptocurrency as a partisan issue vulnerable to accusations of corruption ahead of the 2026 midterms.

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Hoskinson also criticised Trump’s earlier crypto venture, World Liberty Financial, which was launched during the election campaign alongside family members and associates. He argued that launching private crypto projects before establishing clear regulatory rules weakened the industry’s credibility and confused policy priorities.

Concerns extended to Trump’s proposal for a national crypto reserve that included altcoins, which Hoskinson opposed on the grounds that governments should not determine market winners. He said the U.S. government already holds approximately 200,000 Bitcoin, seized through law enforcement actions, worth about US$17.1 billion (AU$25.85 billion).

After publicly opposing the plan, Hoskinson said he was disinvited from a private Mar-a-Lago dinner, reinforcing his view that dissent carries consequences. Despite this, he maintained that speaking honestly was more important than preserving political access.

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