Cardano Founder Hoskinson: Trump Memecoin Derailed US Crypto Regulatory Reform

VADODARA, January 13, 2026 — Cardano founder Charles Hoskinson has issued a stark assessment of US cryptocurrency policy, arguing that the Trump administration's actions have inflicted more damage on the industry than the Biden administration's. In an interview with CoinDesk, Hoskinson claimed a presidential memecoin launch in early 2025 shattered bipartisan momentum for regulatory clarity, directly stalling the passage of the stablecoin bill (GENIUS) and the crypto market structure bill (CLARITY). This latest crypto news highlights how political volatility has become a primary driver of market structure uncertainty, with Cardano (ADA) trading at $0.386, down 0.51% in 24 hours amid a broader fear sentiment.

Market Context & Background

Underlying this trend is a multi-year pattern where US regulatory indecision acts as a persistent drag on crypto asset performance. The 2024-2025 period saw nascent bipartisan efforts, with committees drafting legislation to address stablecoin oversight and digital asset market structure. According to historical on-chain data, such regulatory progress phases typically correlate with reduced volatility and increased institutional net inflows. The current deadlock, however, mirrors the 2021-2022 cycle where enforcement actions without clear rules created a liquidity grab environment, pushing capital toward jurisdictions with defined frameworks. Consequently, the US risks ceding its competitive edge, a scenario detailed in the SEC's ongoing rulemaking proceedings on digital asset securities.

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What Happened?

According to the CoinDesk interview, Hoskinson stated that President Trump's election initially generated optimism for pro-innovation policies. That sentiment evaporated instantly with the launch of a memecoin by the president and first lady in Q1 2025. Hoskinson asserted this event transformed cryptocurrency into a partisan issue, halting the bipartisan regulatory reform efforts that were underway. He claimed that, absent the memecoin launch, both the GENIUS and CLARITY bills would have already been enacted. This analysis aligns with legislative tracking data showing committee markups stalled precisely in that period, creating a fair value gap in regulatory expectations versus reality.

Technical Analysis & Price Action

Market structure suggests ADA is consolidating within a descending channel after rejecting the $0.45 resistance level in December 2025. The Relative Strength Index (RSI) on the daily chart reads 42, indicating neutral momentum with a bearish bias. The 50-day and 200-day simple moving averages are converging near $0.40, signaling potential volatility compression. Volume profile analysis shows significant accumulation between $0.35 and $0.38, defining a high-density node that must hold to prevent a deeper correction. The Bullish Invalidation level is set at $0.42; a sustained break above this resistance would invalidate the current downtrend structure and target $0.48. The Bearish Invalidation level is $0.365, corresponding to the Fibonacci 0.618 retracement from the 2025 high; a close below this support opens a path to $0.32.

By The Numbers

Why It Matters

For institutions, the stalling of GENIUS and CLARITY bills delays the establishment of clear custody, trading, and reporting standards, forcing allocators to price in higher regulatory risk premiums. This directly impacts capital deployment, as seen in reduced venture funding for US-based crypto projects in Q4 2025. For retail, the partisan deadlock perpetuates a cycle of enforcement-by-surprise, increasing the likelihood of sudden liquidity grabs during market stress events. The absence of a federal market structure framework also fragments state-level approaches, complicating compliance for decentralized applications (dApps) built on networks like Cardano. Consequently, the entire ecosystem faces a structural headwind that suppresses valuation multiples until clarity emerges.

Community Sentiment

Industry observers on X/Twitter reflect a divided outlook. Bulls highlight that regulatory stagnation may accelerate innovation in decentralized governance models, reducing reliance on political cycles. One analyst noted, "The memecoin incident exposed regulatory fragility, but long-term, it pushes builders toward more resilient, on-chain legal frameworks." Bears counter that the US policy vacuum invites more aggressive enforcement actions, citing the recent uncertainty from former SEC officials on cross-border transactions. Market sentiment data from social analytics platforms indicates a net negative bias, with discussion volume spiking around political headlines rather than technological milestones.

Price Prediction / Future Outlook

Bullish Case: If bipartisan efforts resume, potentially post-2026 elections, and the CLARITY bill passes, ADA could see a regulatory gamma squeeze as sidelined institutional capital enters. A break above $0.42 would target $0.55 (2025 high retest) within 6-12 months, driven by renewed staking demand and dApp deployment on Cardano's Plutus smart contract platform.

Bearish Case: Continued partisan gridlock leads to a regulatory vacuum, prompting more stringent state-level actions and SEC enforcement. ADA breaks $0.365 support, triggering a sell-off toward $0.32 as leverage unwinds. This scenario aligns with the current fear sentiment and would likely prolong the crypto winter for US-focused assets.