Charles Hoskinson, co-founder of Ethereum ETH/USD and Cardano ADA/USD, has voiced concerns over the new digital assets platform backed by former President Donald Trump and his sons.
What Happened: In an interview with the Financial Times on Friday, Hoskinson expressed reservations about the Trump-supported venture, World Liberty Financial. This decentralized finance (DeFi) platform aims to offer financial services without the need for intermediaries such as banks or exchanges.
The Cardano blockchain's founder fears this platform could become a political issue.
“Trump is launching a DeFi application, and that's scary to me as an industry,” Hoskinson said.
"Everything Trump does the left hates with such a passion," he stated. "He's taken a bipartisan thing and he's making it partisan."
He further speculated that Democrats might "attempt to weaponize the institutions of the United States to slow down and damage Trump," potentially leading to investigations by the Department of Justice or the SEC.
Despite Trump's recent outreach to the crypto industry and support from influential crypto investors, Hoskinson doubts that either Trump or Kamala Harris, if elected, would foster a robust cryptocurrency industry in the U.S.
While in Singapore, Hoskinson lauded the city-state’s political neutrality and its potential to simplify and embrace decentralized identity, contrasting it with Hong Kong’s absorption into mainland China’s political system.
Also Read: Ethereum Co-Founder Says Donald Trump Is ‘Certainly The Favorite’ Over Kamala Harris For Crypto
Why It Matters: The politicization of the crypto industry could lead to a polarized environment, potentially hindering its growth and development.
Hoskinson’s concerns highlight the potential risks associated with political involvement in the crypto space. It remains to be seen how these developments will impact the future of the industry.
In a CNBC interview, Hoskinson highlighted that the world is embracing cryptocurrencies with or without America and is trending towards decentralization.
He highlighted that many from the Trump camp are open to fair regulation and engagement dialogue which is in contrast to the Democratic Party. However, the younger-aged group is open to dialogue about the sense of regulation.
He added "Trump is Trump…he is an anomaly" and a convergence between the two parties should be good for crypto regulations.
Read Next:
Image: Shutterstock
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
