The founder of Cardano and Ethereum Charles Hoskinson has expressed deep concern about the new activity of the DeFi platform of former President Donald Trump known as World Liberty Financial.
Speaking in an interview, Hoskinson said that this business may turn into a political situation. This could add to the already tense situation surrounding the regulation of cryptocurrencies in the United States.
In his comments, the official expressed an emerging uneasiness about seeing how politics is entering the world of digital finance from the top ranks of the industry.
Trump: Political Polarization and Crypto
The biggest fear Hoskinson has is political alienation due to Trump in crypto. According to him, “Everything Trump does, the left hates with such passion,” suggesting that Trump’s actions could cause a backlash from Democrats.
This may result in investigations by regulatory agencies such as the Department of Justice or the Securities and Exchange Commission, which may stifle innovation and growth within the industry.
According to the founder of Cardano, although Trump presents himself as the candidate for the position of crypto-crypto, the history of high turnover of employees in the White House raises all kinds of concerns about his ability to create a clear cryptocurrency policy.
In addition, Hoskinson criticized both Trump and Vice President Kamala Harris for failing to present a vision for the future of crypto in America. He believes that no leader shows sufficient sophistication in understanding the complexities associated with cryptocurrency regulation.
This is very alarming because they both put themselves in leadership positions in America at a time when cryptocurrency adoption around the world is growing geometrically.
The Effects of the Crypto Industry
The potential politics of World Liberty Financial could have a major impact on the entire crypto sector. Hoskinson emphasized that this forum could turn what has been a divisive issue into a divisive one.
Hoskinson warned that if Democrats feel threatened by Trump’s DeFi plan, they could use government power to stifle it. This would make many crypto projects go offshore where regulatory conditions would be much easier.
Despite those risks, Hoskinson mentioned several positive aspects of Trump’s approach to crypto. He said Trump’s recent outreach to the crypto community has attracted influential investors and advocates in the industry. However, he remains cautious about whether this support will translate into effective policies if Trump returns to power.
Future Prospects for Digital Currencies
Looking ahead, Hoskinson said the key is to establish a clear regulatory framework to encourage growth in the US crypto market. He thinks that if America can create an environment that allows innovation, this could end up adding billions of dollars to the country’s economy over the next decade.
On the contrary, he says that other regions such as Singapore and parts of Europe are moving forward with crypto-friendly laws while the US lags behind.
Therefore, players in the crypto sector will have to be very careful about how things develop politically as World Liberty Financial builds to its launch. The success or failure of this project may set a great example for the following crypto projects in America.
What matters will depend on whether both political parties learn to engage with this space of rapid change.
This warning from Charles Hoskinson reflects the great concern among the cryptocurrency community that political convergence around the world should not influence regulatory policies. As Trump’s DeFi plans begin to take shape, all eyes will be on how they may impact not only his political ambitions but also the future success of cryptocurrencies in America.
Featured image from Protos, chart from TradingView