Cardano Founder Blames Trump Memecoins for Collapse of Bipartisan US Crypto Push
Hoskinson Blames Trump-Linked Memecoins for Derailing US Crypto Legislation
Cardano founder Charles Hoskinson has issued a sharp warning about the political consequences of high-profile memecoin launches tied to former US President Donald Trump, arguing that they severely damaged the credibility of the cryptocurrency industry at a critical moment for regulation in Washington.
According to Hoskinson, the emergence of the TRUMP and MELANIA memecoins created an image of corruption and opportunism that ultimately undermined bipartisan momentum in Congress to pass landmark digital asset legislation. He said the timing of these tokens, launched amid sensitive negotiations over crypto regulation, played a direct role in closing what had been a rare political window for cooperation.
Information surrounding Hoskinson’s remarks has been confirmed by the X account Coin Bureau, and the hokanews editorial team is citing the account as part of its verification process, in line with standard media practice.
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| Source: XPost |
A fragile bipartisan moment
In interviews and public commentary, Hoskinson emphasized that 2025 represented a turning point for US crypto policy. After years of regulatory uncertainty, lawmakers from both major parties had begun aligning on the need for clear rules governing digital assets, stablecoins, and blockchain-based financial products.
Two major legislative efforts stood at the center of this momentum: the GENIUS Act and the CLARITY Act. While different in scope, both bills aimed to establish clearer definitions for digital assets, delineate regulatory authority between federal agencies, and create compliance pathways for companies operating in the crypto sector.
Hoskinson said that, for the first time in years, there was genuine bipartisan interest in moving beyond enforcement-driven policy toward a structured regulatory framework that could foster innovation while protecting consumers. That fragile consensus, he argues, was shattered almost overnight.
Memecoins and political optics
The launch of memecoins branded around Trump and former First Lady Melania Trump quickly attracted massive attention across social media platforms and crypto trading forums. Supporters framed the tokens as cultural expressions and community-driven assets, while critics saw them as blatant political branding exercises that blurred the line between financial speculation and personal enrichment.
Hoskinson falls firmly into the latter camp. He said the optics of politically connected figures being associated, even indirectly, with highly speculative tokens made the entire crypto industry appear unserious at best and corrupt at worst.
In his view, lawmakers who were already cautious about digital assets suddenly faced a public narrative suggesting that crypto was a playground for political profiteering. That narrative, he said, gave skeptical regulators and anti-crypto politicians fresh ammunition to argue against advancing legislation.
From reform to retreat
Before the memecoin controversy, Hoskinson said discussions around the GENIUS and CLARITY Acts had been progressing steadily. Industry leaders were engaging with policymakers, offering technical insights, compliance proposals, and economic data aimed at demonstrating the long-term value of blockchain innovation in the United States.
After the memecoin launches, however, the tone reportedly changed. According to Hoskinson, congressional staffers and lawmakers became far more guarded, with some privately expressing concern about being seen as endorsing an industry that appeared intertwined with partisan branding and speculative excess.
As a result, momentum stalled. Hearings were delayed, negotiations slowed, and bipartisan cooperation weakened. What had looked like a viable path to passing comprehensive crypto legislation in 2025 was effectively derailed.
Impact on the broader crypto market
The political fallout was not limited to Washington. Hoskinson warned that regulatory uncertainty continues to weigh heavily on US-based crypto firms, pushing innovation offshore and discouraging institutional participation.
He argued that when high-profile memecoin launches dominate headlines, they overshadow serious blockchain applications in areas such as supply chain management, decentralized identity, and financial inclusion. This imbalance, he said, reinforces the perception that crypto is driven more by hype than by substance.
Market analysts echo this concern, noting that while memecoins can drive short-term trading volumes, they often contribute to long-term volatility and reputational risk. In regulated markets like the United States, perception plays a crucial role in shaping policy outcomes.
The Trump factor in crypto politics
Trump’s evolving stance on cryptocurrency has been closely watched. Once a vocal critic of Bitcoin and digital assets, he has in recent years adopted a more favorable tone, appealing to crypto-friendly voters and donors.
However, Hoskinson suggested that this political pivot carries risks. By associating crypto with partisan identity, he said, the industry risks alienating half the political spectrum, making durable regulatory consensus far more difficult to achieve.
In Washington, bipartisan support is often essential for passing complex financial legislation. Hoskinson argued that crypto cannot afford to be perceived as aligned with any single political figure or movement, especially one as polarizing as Trump.
Lessons for the industry
Hoskinson’s comments serve as a broader warning to crypto entrepreneurs and investors. He urged industry leaders to consider not just market demand, but also regulatory and political consequences when launching new products.
According to him, memecoins tied to public figures may generate attention and liquidity, but they also invite scrutiny and skepticism that can spill over into the entire sector. In a regulatory environment already marked by distrust, such actions can have outsized negative effects.
He called on crypto leaders to prioritize long-term legitimacy over short-term gains, emphasizing that sustainable adoption depends on trust from regulators, institutions, and the general public.
Verification and media standards
The hokanews editorial team notes that Hoskinson’s remarks and the surrounding context have been confirmed through reporting shared by the X account Coin Bureau. As with most industry coverage, hokanews relies on a combination of direct statements, reputable secondary sources, and cross-platform verification to ensure accuracy.
While Coin Bureau played a role in confirming the information, hokanews has independently contextualized the statements within the broader regulatory and political landscape, consistent with standard journalistic practices.
What comes next for US crypto regulation
Despite the setback, Hoskinson remains cautiously optimistic about the future. He believes that regulatory clarity is inevitable, driven by growing institutional adoption and international competition.
However, he warned that the United States risks falling behind jurisdictions that have already implemented comprehensive crypto frameworks. Without clear rules, innovation may continue to migrate to regions with more predictable regulatory environments.
Hoskinson concluded that the industry must learn from recent missteps. For crypto to achieve mainstream acceptance, he said, it must distance itself from political spectacle and refocus on building transparent, accountable, and genuinely useful technologies.
As Congress prepares for another legislative session, the fate of the GENIUS and CLARITY Acts remains uncertain. What is clear, however, is that the debate over memecoins, political branding, and regulatory credibility will continue to shape the future of cryptocurrency in the United States.
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Writer @Ethan
Ethan Collins is a passionate crypto journalist and blockchain enthusiast, always on the hunt for the latest trends shaking up the digital finance world. With a knack for turning complex blockchain developments into engaging, easy-to-understand stories, he keeps readers ahead of the curve in the fast-paced crypto universe. Whether it’s Bitcoin, Ethereum, or emerging altcoins, Ethan dives deep into the markets to uncover insights, rumors, and opportunities that matter to crypto fans everywhere.
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