Charles Hoskinson criticized Trump’s crypto policy as extractive

Hoskinson said the Trump administration’s approach turned the crypto market into a politicized arena where decisions were made for the benefit of specific individuals rather than the health of the ecosystem. He noted that expectations across the industry were high after Trump’s victory, but the launch of Trump Coin immediately destroyed that foundation of trust.

According to him, the coins issued by Donald and Melania Trump triggered a wave of memecoins, widespread investor losses, and a subsequent market collapse. “Extractiveness has been institutionalized. It’s no longer an anonymous Pump.Fun developer — it’s the U.S. government,” he said.

Hoskinson believes memecoins were the reason key bills — the GENIUS Act and the Clarity Act — failed, despite their potential to establish a stable regulatory framework. After the Trump Coin scandals, crypto came to be seen as a tool for political gain, intensifying Democratic resistance and halting reform.

He stressed that memecoins are not inherently the issue, but launching them without structure or oversight damaged the industry’s credibility: “If you associate crypto with corruption and instant personal gain, you lose half the country.”

Hoskinson also criticized the administration for lacking any infrastructure for industry engagement. He described its handling of crypto policy as “a predatory free market of influence,” with no unified strategy and chaotic, shifting decisions.

He expressed particular concern over ADA, XRP, and Solana being designated part of the president’s crypto reserve. Hoskinson said he was not informed about ADA’s inclusion and worries that a change in administration could bring legal consequences: “We never discussed anything, but we’ll be the ones answering for it.”

Hoskinson warned that the window for reform is closed until 2029. Political weaponization, he said, has left the industry without a clear path forward: “Crypto became a weapon. And it didn’t help anyone.”