Cardano's Hoskinson warns Trump-backed crypto venture could harm industry

Cardano founder raised concerns about the Trump-backed crypto platform, warning it could bring regulatory challenges and politicize the industry.

Charles Hoskinson, founder of the Cardano (ADA) blockchain, has expressed concerns over World Liberty Financial, a new decentralized finance platform backed by former U.S. President Donald Trump and his sons.

In an interview with the Financial Times, Hoskinson warned that Trump’s push into crypto could complicate the regulatory landscape for the industry, saying that “everything Trump does the left hates with such a passion.” He also cautioned that this partisanship could provoke investigations from U.S. regulatory bodies, potentially destabilizing the broader crypto market.

Despite Trump’s previous dismissal of Bitcoin as a “scam,” he has recently pledged to transform the U.S. into a “Bitcoin superpower.” However, Hoskinson remains skeptical of both Trump and Kamala Harris‘s ability to foster a supportive environment for cryptocurrency as he believes that neither candidate demonstrates the necessary sophistication in understanding crypto issues.

“I do not see that level of quality and sophistication in the discourse [with Trump or Kamala Harris in the crypto space].”

Charles Hoskinson

Hoskinson’s comments follow World Liberty Financial’s confirmation that it plans to launch a governance token, WLFI, which will be available only to accredited investors under a Regulation D exemption. The project has enlisted top-tier security firms to audit and secure the platform as regulatory uncertainty remains a challenge.

Nonetheless, Hoskinson still believes Trump may struggle to fulfill his pro-crypto policy promises if he wins the November election, casting doubt on the administration’s capacity to nurture the industry.