Hoskinson blamed President Donald Trump’s crypto adviser David Sacks for regulatory drift, weak market conditions, and a lack of clear direction, while also warning that other proposals like the GENIUS Act risk favoring Wall Street over crypto’s decentralized roots. His comments came as the US Senate Agriculture Committee postponed its markup of the crypto market structure bill until late January due to the need for more bipartisan support.
Hoskinson Slams US Crypto Leadership
Charles Hoskinson recently voiced his strong skepticism about the prospects of the US Digital Asset Market Clarity Act. He argued that the legislation is unlikely to pass in the current quarter, and warned that the crypto industry risks missing a narrow political window for meaningful regulatory reform.
In an interview with Bitcoin commentator Scott Melker on The Wolf of All Streets podcast, Hoskinson said delays could prove fatal to the bill’s chances if Democrats regain control of the US House of Representatives in the upcoming midterm elections. Hoskinson went further by directly criticizing David Sacks, President Donald Trump’s appointed crypto adviser, and even called for his resignation if the CLARITY Act fails to advance this quarter.
Hoskinson argued that Sacks has “utterly failed” the digital asset sector since taking on the role in late 2024, and judged his performance by what he described as worsening market conditions, regulatory uncertainty, and a lack of a coherent framework for builders and developers. He pointed to broad market declines, claiming that many cryptocurrencies are down between 40% and 50% since Trump took office, as evidence that the industry is still very much unhealthy and directionless.
The CLARITY Act was introduced in May of 2025, and has already passed key hurdles in the House, clearing both the Financial Services Committee and the Agriculture Committee with bipartisan backing. The bill is designed to clearly define how cryptocurrencies are regulated in the United States by delineating the responsibilities of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), while also offering guidance on how different categories of tokens should be treated.
Beyond CLARITY, Hoskinson also criticized the broader direction of US crypto policy by arguing that other proposals, including the stablecoin-focused GENIUS Act, disproportionately favor large financial institutions. He warned that such measures risk centralizing the industry around Wall Street giants like BlackRock, Goldman Sachs, and Morgan Stanley, sidelining retail participants and undermining crypto’s original decentralized ethos. In his view, these policies amount to handing control of the sector to traditional finance under the guise of regulation.
Additionally, Hoskinson also took aim at nationalist approaches to crypto, including initiatives linked to Trump-branded tokens, and stressed that cryptocurrency protocols are inherently global and should not be treated as national assets. While acknowledging the need for regulation, he urged lawmakers to prioritize durable, innovation-friendly rules developed in cooperation with the industry, even if that process takes longer.
US Senate Pushes Crypto Bill Markup to Late January
Meanwhile, the US Senate Agriculture Committee delayed its planned markup of the major crypto market structure bill until the final week of January, due to the need for additional time to build broader political support. Committee Chairman John Boozman said lawmakers have made meaningful progress on the legislation but require more discussions before advancing it formally.
He explained that the goal is still passing a bill with bipartisan backing, but finalizing remaining details will help ensure the measure has the broad support necessary to move forward.
The bill is closely watched by the crypto industry because it will establish how US regulators oversee digital asset markets. In particular, it will clarify the respective roles of the SEC and the CFTC. While the Senate Agriculture Committee oversees the CFTC, the Senate Banking Committee has jurisdiction over the SEC and is still expected to proceed with its own markup of the legislation this week. The two markups were originally intended to occur at the same time.
The Senate’s version of the market structure bill is distinct from the House-passed CLARITY Act, which cleared the lower chamber in July. Procedural rules require separate legislation in the Senate, even though both efforts aim to create a comprehensive regulatory framework for crypto markets. Lawmakers and lobbyists are pushing for several amendments that could materially alter the bill’s scope.
Among the most contentious issues are proposed ethics provisions and restrictions on stablecoin yields. Some Democratic senators are advocating for strong conflict-of-interest safeguards that would prevent public officials, including President Donald Trump, from financially benefiting from ties to crypto companies. Bank lobbyists are also pressing lawmakers to ban third-party platforms, like crypto exchanges, from offering yield on stablecoins, following similar restrictions placed on issuers under the GENIUS Act.
At the same time, crypto industry groups are urging lawmakers to ensure that software developers and non-custodial platforms are not classified as financial intermediaries, as such treatment could stifle innovation.
Source: https://coinpaper.com/13706/charles-hoskinson-says-us-crypto-policy-is-failing-industry
