During the recent Midnight Summit 2025, Charles Hoskinson, co-founder of Cardano, articulated how the pro-cryptocurrency policies of former President Donald Trump have disrupted the established four-year market cycle. Hoskinson noted that many industry participants, himself included, anticipated that the Trump administration would provide substantial momentum for the cryptocurrency sector.
As the year commenced, there was a prevailing belief that the Trump administration would serve as a “magic net positive” for the crypto ecosystem. This optimism stemmed from Trump”s campaign promises aimed at transforming the U.S. into the global hub for cryptocurrencies. These commitments were supported by significant policy initiatives, such as an executive order designed to foster the responsible growth of digital assets, limitations on federal agencies” promotion of central bank digital currencies, and a concerted effort to enhance the adoption of stablecoins.
The administration also aimed to streamline banking access for cryptocurrency businesses. Notably, the White House established the President”s Working Group on Digital Asset Markets, led by David Sacks, and the SEC initiated its “Crypto 2.0” task force to develop a thorough regulatory framework.
Despite these initiatives, Hoskinson criticized the execution as being “a little unhelpful,” labeling the U.S. government as a “bag holder.” He asserted that the government”s approach has fostered “irrational exuberance,” leading to distortions in the market”s cyclical nature.
Nevertheless, Trump”s platform has been distinctly favorable toward cryptocurrency. He has committed to establishing a national stockpile of digital assets and retaining 100% of the Bitcoin held by the government. Additionally, Trump has pledged that all future Bitcoin mining endeavors would occur within U.S. borders, emphasizing that domestic mining would enhance America”s energy independence and geopolitical strength.
While Hoskinson believes that these policies could yield long-term benefits for the industry, he expressed concern that they currently intersect with heightened anxieties surrounding privacy. He pointed out that users are increasingly apprehensive about the permanent traceability of their financial activities. This issue is influencing the strategic direction of Midnight, a project aimed at addressing such privacy concerns.
Hoskinson also highlighted the growing engagement surrounding Midnight, citing its recent scavenger hunt, which successfully completed over 2.5 years of Bitcoin mining in under 20 days. Coupled with expanding partnerships and a phased four-part launch, he remarked that the ecosystem is entering a period of intense yet intricate transformation.
