Cardano (ADA) founder Charles Hoskinson has a bone to pick with how U.S. government officials are selecting which cryptocurrencies deserve attention. In a recent appearance on Decrypt Media, he argued that policymakers are playing favorites with assets like ADA, XRP (XRP), and Solana (SOL) without any transparent methodology to justify those choices.
Where's the Scorecard?
Hoskinson's central complaint is straightforward: if government agencies are going to endorse specific cryptocurrencies or integrate them into official systems, they need objective standards. "Where is the government agency that scores and certifies these things?" he asked, pointing out that important metrics like decentralization, long-term network viability, and investability shouldn't be left to subjective judgment.
He referenced academic work at the University of Edinburgh, where Cardano contributors helped develop frameworks for measuring decentralization across multiple dimensions. According to Hoskinson, this kind of rigorous analysis is exactly what should guide decisions when public funds or official endorsements are on the line.
The Index Solution
Rather than having government officials handpick their favorite blockchain networks, Hoskinson suggests a simpler approach: let the market do the work through index products. Think of it like how traditional finance uses the S&P 500 instead of having politicians select individual stocks.
"If the government is going to get involved, what they should do is buy an index and make a deal with Coinbase or something, like the Coinbase 50, so there's at least objectivity behind how the weighting and scoring works," Hoskinson said.
His logic makes sense. An index-based approach would use transparent criteria for inclusion and weighting, removing the appearance of favoritism. It's the difference between saying "we picked these because they meet X, Y, and Z criteria" versus "we picked these because, well, we like them."
The Uncomfortable Questions
Hoskinson didn't hold back when pointing out the inconsistencies in current government crypto preferences. "Why is ADA in the system but not Algorand (ALGO)? Why is XRP in the system but not BNB (BNB)?" he asked.
Without clear answers to these questions, policymakers open themselves up to political attacks and accusations of picking winners and losers arbitrarily. Hoskinson warned that this kind of selective endorsement creates serious political risk.
He even took it a step further, imagining what he'd say if consulted directly: "If I was at that dinner and they were pitching it to the president, I'd say, 'Mr. President, don't do this. It's a bad idea. You're going to get egg all over your face.'"
The concern isn't just theoretical. Once government officials publicly favor specific crypto assets, they own the consequences if those projects fail, face security issues, or become embroiled in controversy. It's a lot of downside risk for unclear upside benefit.
Technical Picture Still Looks Rough
While Hoskinson advocates for Cardano's inclusion in any objective government framework, the token's price action tells a less optimistic story. Despite some recent bounces, ADA remains stuck in a bearish technical structure that's been in place since early October.
The chart shows a well-defined descending channel with lower highs and lower lows still intact. Recent rebounds from the $0.34 area have stalled quickly, suggesting these upside moves are corrective bounces rather than the start of a new uptrend.
Key resistance sits near $0.44, where the Supertrend indicator remains overhead. Parabolic SAR dots continue printing above price, another signal that downside momentum hasn't reversed. The immediate support zone to watch is $0.34 to $0.35. A daily close below this level could open the door to $0.30, where untested demand from early 2023 sits waiting.
For bulls to regain control, ADA would need to reclaim $0.44 and hold it, which would invalidate the current bearish channel structure. Until that happens, the path of least resistance remains down.