Charles Hoskinson outlines challenges facing Trump’s DeFi project, World Liberty Financial, as well as potential regulatory scrutiny.
Charles Hoskinson, founder of the Cardano blockchain, has raised concerns about the new decentralized finance (DeFi) project, World Liberty Financial (WLFI), backed by former U.S. President Donald Trump.
Charles Hoskinson Warns About Trump’s World Liberty Financial
In a recent interview, Hoskinson shared his apprehensions about the WLFI project, which Trump and his sons own.
The venture seeks to offer financial services without relying on traditional banks or exchanges, aiming to bypass what it calls “slow and outdated big banks.”
The project, launched earlier this week, announced that 63% of its WLFI token supply would be available to the public.
However, Hoskinson voiced concerns that Trump’s involvement could bring intense regulatory scrutiny.
He noted that the project’s political affiliations could lead to attacks from various U.S. political entities.
Hoskinson highlighted that any association with Trump tends to polarize opinions, which may have broader negative effects on the entire crypto community.
He also warned of potential investigations by the Department of Justice or the Securities and Exchange Commission (SEC).
As Hoskinson put it, “He’s taken a bipartisan thing and he’s making it partisan.”
Skepticism Over Political Promises
Despite Trump’s recent pledge to make the U.S. a “Bitcoin superpower,” Hoskinson remains doubtful about the feasibility of such promises.
He questioned the ability of both Trump and Vice President Kamala Harris to genuinely support the crypto industry, suggesting that the current political landscape lacks a deep understanding of blockchain technology.
Hoskinson argued that fostering a crypto-friendly environment requires more than political rhetoric; it demands a comprehensive understanding and sophisticated policymaking, qualities he believes are absent in current political discourse.
As he stated, “I don’t see that level of quality and sophistication in the discourse” from Trump or Harris regarding crypto.
Hoskinson also predicted that with clearer regulations, the U.S. crypto market could grow by $5 to $10 trillion over the next decade, a sentiment echoed by other industry leaders.
Ripple’s Chief Legal Officer, Stuart Alderoty, recently remarked that regulatory clarity could position Ripple as a leader in U.S. crypto solutions.
Following World Liberty Financial’s (WLFI) launch, the DeFi project has already faced criticism. U.S. SEC Commissioner Mark Uyeda recently commented on the project, advising, “If I were talking to President Trump or any other crypto entrepreneur, I would tell them to hire good lawyers.”
