Cardano’s Charles Hoskinson Slams Ripple CEO Over ’Sabotaged’ Clarity Act – What’s the Real Beef?
Charles Hoskinson just threw digital daggers at Ripple's Brad Garlinghouse. The Cardano founder accused the Ripple CEO of undermining crypto's landmark regulatory framework—the Clarity Act. But why the public feud now?
The Alleged Sabotage
Hoskinson claims backroom maneuvers by Ripple leadership intentionally weakened the legislation. He suggests provisions that would have explicitly recognized proof-of-stake networks like Cardano were gutted, while exceptions favorable to Ripple's model remained. It's a classic case of regulatory capture, just with more blockchain jargon and less cigar smoke.
A Battle of Titans—and Technologies
This isn't just personal. It's a proxy war between competing blockchain philosophies. Cardano's research-driven, peer-reviewed approach clashes with Ripple's institution-first, payments-focused strategy. The Clarity Act became the battleground, with each camp fighting to shape rules in its own image. The winner gets a multi-billion-dollar head start.
The Ripple Rebuttal
Ripple's camp fires back, calling the accusations "baseless." They point to their own extensive lobbying for clear rules and argue the final bill reflects necessary political compromises. In their view, Hoskinson is scoring cheap points while they did the actual trench work—a familiar refrain in any industry where lobbying budgets are a competitive advantage.
Why This Matters for Your Portfolio
Regulatory clarity isn't just lawyer talk. It determines which coins exchanges can list, which assets institutions can buy, and which projects get venture funding. A law shaped by one player can freeze out others. For investors, it's the difference between betting on the technology and betting on the best-connected lobbying team—in crypto, the latter often pays faster.
The fallout exposes crypto's dirty secret: everyone preaches decentralization, but when regulation knocks, they all scramble to be the central power it recognizes. Hoskinson's blast isn't just criticism; it's a warning shot in the fight to define crypto's legal soul. The real question isn't who sabotaged what, but whether any blockchain truly wins when the rules are written by the boardroom.
Hoskinson Doubts CLARITY Act Can Survive This Quarter
The remarks were in response to Garlinghouse’s public endorsement of the CLARITY Act, which seeks to clarify the regulatory jurisdiction between the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission.
Garlinghouse has claimed that the bill is not flawless, but even with its passing, it would be an improvement in an industry that has been shrouded in legal ambiguity.
He has maintained that the crypto sector cannot afford to wait indefinitely for ideal legislation, particularly as lawmakers attempt to merge the Clarity Act with broader crypto market structure proposals.
Hoskinson’s objections go beyond the bill’s text and extend into the political environment surrounding it. He has blamed the TRUMP administration’s crypto policy leadership, particularly David Sacks, for undermining the bill’s early bipartisan momentum.
The @SECGov has sharply scaled back its enforcement actions against the cryptocurrency industry since @realDonaldTrump returned to office.#SEC #Trumphttps://t.co/NCTPm62pCR
Hoskinson said that what once had a realistic chance of passage became politically compromised after President Trump’s involvement in launching meme coins, which he said turned regulatory discussions into partisan theater.
Hoskinson has gone as far as calling for Sacks to resign if he fails to guide the legislation through Congress, arguing that the window for passage is rapidly closing.
Cardano’s Charles Hoskinson says Trump’s crypto czar should resign if the CLARITY Act fails this quarter, criticizing U.S. crypto policy and regulatory failures.#CLARITYAct #Cardano https://t.co/8PnQun55TI
The Cardano founder suggested that the likelihood of passage diminishes with each week of inaction, as competing priorities and political calculations take over in Washington.
Optimism Meets Resistance as Crypto Leaders Disagree on Clarity Bill
Not all industry leaders share Hoskinson’s pessimism, as Galaxy Digital CEO Mike Novogratz has said he believes the bill could still MOVE forward within weeks, citing conversations with bipartisan lawmakers who remain engaged.
@galaxyhq warns the Senate crypto bill could give the U.S. Treasury “Patriot Act-style” surveillance powers over DeFi.#DeFi #Senate #Treasury https://t.co/0u8PR3ueM5
At the same time, Coinbase CEO Brian Armstrong has distanced his company from the bill in its current form, adding another LAYER of complexity to the debate.
Armstrong confirmed that Coinbase withdrew its support over concerns that the latest draft could harm decentralized finance, restrict tokenized stock offerings, and prohibit stablecoin yield-sharing with users.
Though he refuted claims of a rift between Coinbase and the WHITE House, Armstrong stated that the exchange would prefer that the bill be stalled rather than enacted with what he called harmful provisions to innovation and consumers.
@Coinbase CEO @brian_armstrong denied reports of a White House rift and said support for the CLARITY Act remains intact.#Coinbase #Cryptohttps://t.co/530Jslc9vX
This position of Armstrong seems to correspond more with the concerns of Hoskinson than with those of Garlinghouse.
Lawmakers subsequently postponed a planned markup of the bill, showing that negotiations remain unresolved.
The debate has exposed broader tensions within the crypto sector, with some executives pushing for immediate regulatory clarity and others warning that rushed legislation could entrench restrictive rules for years.
