Cardano Founder Claims TRUMP Token Derailed Crypto’s Congressional Momentum

Cardano founder Charles Hoskinson has alleged that the launch of President Donald Trump’s TRUMP meme token just days before his inauguration cost the cryptocurrency industry what would have been overwhelming bipartisan support for landmark digital asset legislation in the Senate.

In a recent interview, Hoskinson claimed that crypto advocates were positioned to secure approximately 70 Senate votes for the CLARITY Act in December 2024, representing a rare moment of bipartisan consensus on cryptocurrency regulation. However, he argues that Trump’s decision to launch his personal meme coin three days before taking office transformed what should have been a unified policy victory into a divisive partisan battleground.

“We were expecting about 70 senators to support comprehensive crypto legislation,” Hoskinson stated, referring to the market structure bill that passed the House in July 2025 with strong bipartisan support. The CLARITY Act aims to establish clear regulatory frameworks for digital assets, defining when tokens qualify as securities versus commodities and delineating oversight responsibilities between the SEC and CFTC.

The timing of the TRUMP token launch has created what industry insiders describe as a “Bitcoin-only crisis” within the crypto community. The controversy centers on concerns that Trump’s family ventures, including World Liberty Financial and the $TRUMP meme coin, have introduced conflicts of interest that undermine the industry’s credibility with lawmakers who were previously supportive of digital asset legislation.

Bitcoin currently trades at $89,501.00, up 0.93% in the past 24 hours but down 0.33% over the past week, maintaining its market dominance at 59.25% with a market capitalization of $1.78 trillion. The broader cryptocurrency market cap stands at $3.02 trillion, with Bitcoin accounting for 59.1% of the total value.

The TRUMP token itself has become emblematic of the industry’s challenges, having declined approximately 93% from its all-time high of $73.40. House Democrats have labeled the token “an acceleration of the conflict-of-interest concerns underlying the President’s earlier crypto ventures,” particularly as the Trump family has simultaneously promoted crypto investments from the White House while launching competing products.

Senate negotiations on cryptocurrency legislation have stalled amid these concerns, with lawmakers divided over anti-money laundering provisions and requirements for decentralized finance platforms. The industry had invested more than $245 million in the 2024 election cycle to promote pro-crypto candidates, including Trump, according to Federal Election Commission data, expecting favorable regulatory outcomes.

The controversy has fractured what was previously a unified crypto advocacy effort. While Trump has delivered on several campaign promises to the industry, including ending the SEC’s enforcement-heavy approach and dropping approximately 60% of existing cases against crypto companies, the meme token launch has created new political liabilities.

Industry observers note that the crypto sector’s transformation under Trump has been marked by both significant regulatory relief and unprecedented volatility driven by the president’s personal involvement in digital asset ventures. The SEC has suspended or dismissed dozens of enforcement cases, while Trump has signed pro-crypto legislation and promoted digital asset investments directly from the Oval Office.

The political implications extend beyond immediate legislative concerns. Senator Cynthia Lummis, a prominent crypto advocate who recently announced she will not seek re-election, had introduced legislation to defer taxation of mining and staking rewards until tokens are sold. Such proposals now face additional scrutiny given the perceived conflicts surrounding the Trump family’s crypto businesses.

As the Senate faces mounting election-year pressures, the window for passing comprehensive cryptocurrency legislation continues to narrow. The Stand With Crypto advocacy group has indicated it will score lawmakers based on their votes during upcoming market structure markups, signaling continued political engagement despite the current impasse.