Cardano Founder Hoskinson Criticizes Ripple CEO for Supporting CLARITY Act - The Market Periodical

Key Insights

• Cardano Founder Charles Hoskinson criticized Ripple CEO Brad Garlinghouse for supporting the CLARITY Act.
• Hoskinson believes the crypto industry has capitulated to the Trump administration.
• The crypto stakeholder is now calling on the crypto community to reject the bill in its current form.

Cardano founder Charles Hoskinson slammed Ripple CEO Brad Garlinghouse. Garlinghouse supported the Crypto-Asset Market Structure and Investor Protection Bill. The bill is also known as the CLARITY Act.

In a livestream on X on January 18, Hoskinson criticized the crypto industry as a whole. However, he took particular aim at Garlinghouse. The livestream covered several topics, including planned privacy enhancements for the Midnight protocol.

Hoskison Criticizes Crypto Industry Capitulation to Trump Admin

For most of the livestream, Hoskinson focused on the crypto industry as a whole. He challenged the pessimistic mentality. He questioned the fixation on what could go wrong. He described the sector as showing “learned helplessness.” He linked this perception to the Trump administration.

According to him, the crypto industry has come to accept everything the Trump administration has to offer. He acknowledged that this is due to the previous administration’s anti-crypto moves. However, he does not see this one as an improvement.

He cited the CLARITY Act, currently under debate in the Senate, as evidence that the Trump administration has not changed anything. In Hoskinson’s opinion, the CLARITY Act gives the Securities Exchange Commission (SEC) full control over the crypto sector.

This is because the agency now determines which projects are securities, and every crypto token is a security by default. Hoskinson does not see this as an improvement, noting that this was what the industry had under Gary Gensler.

The Cardano founder noted that the crypto industry spent millions on donations. He said it also invested heavily in lobbying. He argued that both efforts led to the same point.

He said:

Hoskinson Calls for Rejection of the Clarity Act

Meanwhile, the crypto stakeholder called for the industry to reject the bill. At the same time, he criticized those who want to accept it in its current form. He particularly mentioned Ripple CEO Brad Garlinghouse, who has said people should support the bill despite its flaws.

Hoskison said

The Cardano founder slammed the idea that the Act, in its current form, which gave all powers to the SEC, is better. With this, Hoskinson highlights the growing discontent with the legislation, which has divided the crypto community.

Coinbase CEO Brian Armstrong has publicly withdrawn support for the bill in its current form. However, other major companies such as Ripple and Kraken are still backing the bill. While supporters acknowledge its flaws, they believe those issues can be fixed later.

Unsurprisingly, Hoskinson, who sees any support for the CLARITY Act in its current form as capitulation, disagreed. He noted that it is difficult to amend legislation. He cited the Securities Exchange Act of 1933, which remains unchanged 93 years later, as an example.

He challenged the crypto industry to accept the current chaos. He urged it to fight for the right legislation. He opposed supporting the Clarity Act in its current form.

The crypto sector remains divided. The White House has reportedly threatened to pull the plug, and the fate of the CLARITY Act hangs in the balance.