Donald Trump 's stance on cryptocurrency has undergone a dramatic turnaround in recent years. Once a vocal critic who dismissed Bitcoin as "a scam against the dollar ," Trump has since embraced digital assets as part of his economic agenda.
His administration in 2025 has taken steps toward recognizing crypto as a legitimate asset class, promoting blockchain innovation, and exploring pro-crypto regulation to attract investment to the United States.
This shift marks a broader political realignment, as Trump now positions America as a global leader in digital finance.
However, despite having good intentions, some actions can be detrimental.
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From optimism to overreach
Cardano (ADA) co-founder Charles Hoskinson believes that while the Trump administration's apparent support for crypto was initially seen as a turning point, its approach may now be stifling rather than strengthening the industry.
Speaking at the Midnight Network Summit 2025 to Coindesk on Nov. 17, Hoskinson reflected on the mood that swept through the crypto community as Donald Trump returned to office earlier this year.
"Everybody entered, myself included, 2025 thinking that the Trump administration was going to be this magic net positive for the ecosystem," he said.
Hoskinson noted that the optimism stemmed from a dramatic policy reversal in Washington — shifting from what many perceived as an anti-crypto stance to a more welcoming one.
" It's like that's the biggest economy in the world and it's gone from trying to kill crypto to embracing crypto," he said.
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'Sometimes the big guy hugs too hard'
However, he cautioned that this newfound enthusiasm has come with growing pains.
" Sometimes by having the big guy hug you, they hug too hard and they love too much, and it crushes your ribs.
" What we're having to contend with is the US government, in a very hand-fisted way, has been some case a little unhelpful to the industry, so created an irrational exuberance and it interfered with our normal four year cycle and we're trying to sort all that stuff out."
The crypto four-year cycle refers to the recurring pattern of market behavior driven largely by Bitcoin's (BTC) halving events, which occur approximately every four years. Each halving reduces the reward miners earn for validating transactions, cutting Bitcoin's supply growth in half.
Historically, this event triggers a sequence: accumulation, a sharp bull run, a market peak, and then a prolonged bear market. The reduced supply combined with rising demand often pushes prices to new highs before corrections follow.
Market reaction turns negative
At the time of writing, according to CoinGecko, Bitcoin had dropped to $92,111.70, marking a rapid decline from its high in October.
Ethereum (ETH) was down by 2.7% in 24 hours to trade at $3,011.84. At the same time, XRP had dropped by 3.3% and was changing hands at $2.14. Solana also experienced a 5.2% decline to trade at $129.99.
Related: As bitcoin's price drops, some question Trump's ability to carry out a pro-crypto policy
This story was originally reported by TheStreet on Nov 17, 2025, where it first appeared in the Policy section. Add TheStreet as a Preferred Source by clicking here.
