Cardano’s Charles Hoskinson Slams Democrats’ DeFi Regulation Proposal as Attack on Innovation

Cardano founder Charles Hoskinson has sharply criticized Senate Democrats’ leaked proposal to regulate decentralized finance (DeFi), calling it a dangerous move toward government overreach and centralization. In a YouTube livestream, Hoskinson dissected the proposed legislation, warning that it could give the U.S. Treasury excessive power over blockchain protocols without due process.

Hoskinson argued that the proposed bill would allow the Treasury to maintain a restricted list of DeFi protocols, effectively acting as judge and executioner with “no oversight, no appeals, no due process.” He cautioned that such power could turn into a “kill switch,” threatening the foundation of decentralized systems and innovation in the crypto industry.

The Cardano founder also condemned the bill’s removal of developer protections. Under the proposed framework, anyone involved in designing, deploying, or operating a front-end service for a DeFi protocol could be treated as a regulated intermediary. Hoskinson warned this definition could criminalize developers and builders who form the backbone of decentralized innovation.

Beyond regulatory issues, Hoskinson directed his frustration toward the Democratic Party, accusing it of abandoning its values. He said Democrats once claimed to support “the little guy,” but now only serve the interests of large institutions. “The little guy is the DeFi user — the person downloading a wallet, buying an NFT, or building a meme coin,” he said. “They’re the ones who built crypto, not banks or tech giants.”

Hoskinson further argued that pushing the crypto industry out of the U.S. would be an economic mistake, potentially transferring trillions of dollars in future growth to foreign markets. He urged the public to contact their senators and support a more balanced, bipartisan approach. “Don’t let a small group of Democrat senators destroy this progress,” he warned. “Let your voices be heard — we can’t lose this fight.”

By challenging what he sees as overreach and political bias, Hoskinson joins a growing number of industry leaders urging policymakers to pursue innovation-friendly regulation rather than control-driven policies.