Cardano’s Hoskinson Warns Trump-Backed Crypto Could Harm Industry

Key Points:

• Hoskinson’s Concerns: Charles Hoskinson feels that “Trump’s crypto venture” will inadvertently increase regulatory scrutiny and politicize the industry.
• Headaches from a Regulatory Standpoint: Investigations into the former President may be called for, further depressing the market.
• Question Mark Ahead: While Trump vowed to make sure that his administration supports the crypto sector, Hoskinson thinks otherwise.

Cardano co-founder Charles Hoskinson warned that the “World Liberty Financial,” a DeFi project supported by Trump, would do one of two things: either bring in unwanted regulation or politicize the industry and hurt the crypto market as a whole.

Cardano’s Hoskinson Warns Trump-Backed Crypto Venture Could Harm Industry

Charles Hoskinson, the founder of Cardano, has some serious bones to pick with the latest creation of “World Liberty Financial,” a new defi platform backed by former United States President Donald Trump and his sons. In an interview with the Financial Times recently, Hoskinson said Trump’s involvement in the crypto space could further complicate a politicized industry when it comes to regulation.

Everything Trump does, the left hates with such passion,” Hoskinson said, noting this polarization could result in investigations from U.S. regulatory bodies that could lead to market volatility.
Increased Regulatory Oversight

Although Trump once labelled Bitcoin a “scam,” he recently vowed to make the United States a “Bitcoin superpower.” Hoskinson still doesn’t believe that’s possible with either Trump or VP Kamala Harris on his side. He explained that neither of them had the depth of understanding to offer any real support to the industry.

Read more: Scroll Co-founder Joins WLFI: 6th Advisor for Trump-Backed DeFi

Kudlow Says Trump’s Crypto Plans Won’t Be Easy

“World Liberty Financial” recently confirmed plans to launch a governance token, WLFI, available only to accredited investors under a Regulation D exemption. The project has partnered with top-tier security firms to audit and secure the platform, yet regulatory uncertainty remains a significant hurdle.

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

Still, however, Hoskinson remains sceptical that the administration can come through for its crypto-friendly program, even if Trump is re-elected this coming November. This, in turn, has put something of a dark question mark on the eventual makeup of the future U.S. crypto landscape and its eventual regulatory environment.