Hoskinson says Trump Coin shifted crypto regulation from bipartisan reform to partisan politics, slowing passage of the Clarity Act.
Lawmakers feared backing crypto laws would seem like endorsing Trump ventures, weakening cross-party cooperation ahead of elections.
Regulatory delays increased market uncertainty, helping Bitcoin outperform altcoins while clearer rules could have reduced volatility.
Cardano founder Charles Hoskinson said U.S. crypto legislation slowed after Trump-linked crypto projects entered the market. He made the remarks during a recent public discussion addressing U.S. digital asset policy. Hoskinson explained how the launch of Trump Coin and World Liberty Finance shifted bipartisan reform into a partisan dispute, complicating efforts to pass the Clarity Act.
Optics and Timing Reshape the Policy Debate
Hoskinson said President Donald Trump had the right to launch crypto projects as a private citizen. However, he stressed that public perception mattered during active legislative negotiations. According to Hoskinson, lawmakers expected the Clarity Act to pass in December 2024. He said about 70 senators and a large House majority supported the bill.
However, the Trump Coin launch changed the political framing. Hoskinson said crypto regulation quickly became linked to Trump’s political identity. As a result, bipartisan support weakened. He explained that voting for the bill appeared, politically, like endorsing Trump-linked ventures. This shift, he said, made cross-party cooperation far more difficult.
Bipartisan Momentum Gives Way To Campaign Politics
Hoskinson said many Democrats previously viewed crypto favorably. He noted that millions of U.S. voters and donors held digital assets. According to him, lawmakers wanted to avoid alienating those groups. However, he said Trump’s crypto launch turned regulation into a campaign issue ahead of the 2026 midterms.
As a result, Hoskinson said crypto became associated with corruption narratives during political messaging. He added that industry leaders avoided public criticism to preserve policy access. He named figures such as Ripple CEO Brad Garlinghouse and Coinbase CEO Brian Armstrong. He said silence became common during legislative talks.
Market Disruption Follows Government Involvement
Hoskinson also discussed market effects tied to government involvement. He said regulatory uncertainty disrupted expectations for a strong 2025 market recovery. According to him, Bitcoin reached new highs while altcoins lagged. He attributed the imbalance to instability and policy delays.
He added that clearer rules could have reduced volatility. Hoskinson said earlier passage of the Clarity Act would have shifted focus to rulemaking. He also stated Trump could have launched crypto projects later under an approved framework.
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