Cardano Founder Hoskinson Demands Trump’s Crypto Czar Resign as CLARITY Act Crumbles

Charles Hoskinson, the outspoken founder of Cardano, has launched a blistering public attack against the Trump administration's appointed cryptocurrency czar, calling for an immediate resignation. The demand comes as the much-hyped CLARITY Act—touted as Washington's grand solution for crypto regulation—hits a legislative wall and appears headed for failure.

The Regulatory Mirage

For months, the CLARITY Act promised a clear federal framework, a beacon for an industry drowning in state-by-state compliance chaos. Lobbyists circled, and talking heads predicted a new dawn of institutional adoption. Now, with key committee support evaporating and partisan bickering stalling progress, that promise looks like another D.C. fantasy—the kind that makes Wall Street veterans smirk into their martinis. Another 'transformative' bill destined for the shelf, proving that in finance, the only real clarity is on a quarterly earnings report.

Hoskinson's Gambit

Hoskinson isn't mincing words. He's framing the czar's tenure and the Act's collapse as a singular failure of vision, accusing the administration of appointing a figurehead with no real power or plan. For a blockchain like Cardano, built on peer-reviewed research and methodical development, this regulatory fumble is more than an annoyance—it's an active impediment to the ecosystem's growth and a stark contrast to the decisive moves being made in other global markets.

The Ripple Effect

The fallout is immediate. Development roadmaps get murky. Institutional capital hesitates at the door. The industry is left in a familiar limbo, forced to navigate the same old patchwork of uncertain rules. This legislative failure doesn't just stall progress; it actively rewards the bad actors who thrive in the shadows and punishes the builders trying to operate in the light.

Hoskinson's very public ultimatum is a calculated risk. It burns a bridge with a key regulator but rallies a community hungry for leadership. It transforms a policy failure into a potent narrative: the innovative, transparent world of crypto versus the sluggish, opaque world of legacy politics. Whether this forces a course correction or deepens the divide, one thing is clear—the waiting game is over.

Hoskinson Warns Market Weakness Is Tied to Policy Gaps

His criticism centers on what he described as a lack of regulatory clarity, continued price weakness across the market, and the absence of a stable policy foundation for builders.

Hoskinson pointed to the broader market decline since TRUMP returned to office, noting that many major cryptocurrencies are down 40% to 50% over that period.

He linked part of the damage to the launch of the Trump-branded memecoin days before the inauguration, which he said drained liquidity from the market at a fragile moment and undermined confidence among both retail investors and regulators.

The CLARITY Act, introduced in May 2025, has been viewed as one of the most important attempts to define crypto regulation in the United States.

It passed both the House Financial Services Committee and the House Agriculture Committee with bipartisan backing.

Three key pieces of crypto legislation passed the House of Representatives in a critical vote on Thursday afternoon.#House #CryptoPolicyhttps://t.co/m9o0nj2yay

The bill WOULD establish tests to determine whether digital assets should be treated as securities or commodities, an issue that has long plagued the industry.

Attention has now shifted to the Senate, where the Agriculture and Banking Committees are preparing to hold markups on January 15.

Senate Banking Committee Chair Tim Scott has framed the vote as a hard deadline after months of stalled negotiations, arguing that lawmakers must go on record even if consensus remains incomplete.

Hoskinson’s skepticism reflects broader uncertainty in Washington.

As January Votes Near, Crypto Bills Face Growing Lawmaker Skepticism

Several Democrats and a handful of Republicans have criticized the accelerated timeline, saying unresolved issues remain around ethics rules, conflicts of interest, and the treatment of decentralized finance.

U.S. Senate to vote on crypto market structure bill on January 15 despite deep divisions over key issues#CryptoRegulation #USSenate https://t.co/kUWyH1mRCl

DeFi has become one of the most contentious points, with industry advocates pushing for protections for developers and open-source software, while Democrats warn that overly broad exemptions could increase money laundering and national security risks.

Stablecoin regulation has also drawn criticism from Hoskinson, particularly the GENIUS Act, which he said favors large financial institutions at the expense of retail participants.

He argued that the bill would consolidate power among major Wall Street firms and reshape the crypto market in ways that undermine its original principles.

More broadly, Hoskinson warned against efforts to nationalize crypto or frame it as a purely American product.

Behind the scenes, lobbying has intensified as the January votes approach.

Industry groups have flown dozens of representatives to Washington, including exchanges, token issuers, and infrastructure providers, to press lawmakers for action.

Crypto firms ramp up lobbying in Washington as a key Senate vote on U.S. market structure bill approaches.#USSenate #CryptoBillhttps://t.co/bbNSAzfE4r

Despite the renewed push, analysts have cautioned that the political backdrop remains unfavorable, with lawmakers increasingly wary of taking risks as campaigns ramp up.

TD Cowen analysts warned weeks ago that the odds of final passage are slipping, with 2027 now a growing possibility.

Further complicating matters, Senate Agriculture Committee Chair John Boozman has shown openness to delaying the markup to secure stronger bipartisan support, even as the WHITE House continues to urge swift action.