Hoskinson Blasts Ripple CEO Over Support for Clarity Act: Crypto Titans Clash on Regulatory Future
Cardano founder Charles Hoskinson just threw a grenade into the regulatory debate—and Ripple CEO Brad Garlinghouse is in the crosshairs. The flashpoint? Garlinghouse's public endorsement of the Clarity Act, a piece of legislation aiming to draw clearer lines between securities and commodities in crypto. Hoskinson's critique wasn't a polite disagreement; it was a full-spectrum assault on the strategic wisdom of cozying up to regulators.
The Core of the Conflict
For Hoskinson, the issue is philosophical. His argument hinges on a foundational crypto principle: decentralization as a defense. By seeking specific legislative carve-outs, a project implicitly accepts the regulator's framework and jurisdiction. It's a gamble that the rules, once written, will be favorable—and permanent. Hoskinson's stance suggests this is a dangerous game. He champions a different path: building systems so decentralized and transparent that they operate outside the traditional securities paradigm entirely, making the regulatory classification moot.
Ripple's Calculated Bet
Garlinghouse's support is a pragmatic play. Ripple's long and very public legal battle with the SEC has been a masterclass in regulatory risk. The Clarity Act represents a potential off-ramp from that uncertainty. For a company with XRP's history, clear rules—even restrictive ones—can be preferable to existential ambiguity. It's the move of an institutional player seeking a stable operating environment, even if it means accepting a label that pure-decentralization maximalists reject.
A Proxy War for Crypto's Soul
This isn't just a spat between two CEOs. It's a proxy war for the soul of the industry. One side advocates for engagement and legitimization through the existing financial system's rulebook. The other views that rulebook as the problem itself, advocating to build a parallel system that renders it irrelevant. The outcome of this ideological clash will shape everything from investment flows to technological development for the next decade.
The finance jab? Wall Street veterans are watching this debate with popcorn, quietly noting that both sides are desperately seeking a regulatory 'solution'—one to join their club, the other to burn it down—while the old guard profits from the volatility the uncertainty creates.
Hoskinson's blast forces a critical question: Is seeking regulatory clarity a smart strategy for survival, or the first step toward assimilation? In crypto's high-stakes game, picking the right side of that line could determine who thrives and who becomes a footnote.
Garlinghouse says an imperfect bill is better than no regulation
While Garlinghouse supports the Clarity Act, Hoskinson doubts the bill will pass, and Coinbase’s Brian Armstrong opposes it. Garlinghouse emphasizes that although the bill may not be perfect, it is better than the current lack of regulation. These sentiments position him as a major supporter of the bill.
The Ripple boss also stresses that the crypto industry cannot wait for the bill to be perfected as lawmakers work to merge the Clarity Act with the crypto market Structure bill.
He claims that having the Clarity Act enacted at this point is a win. The Clarity Act aims to assign oversight to the CFTC and the U.S. SEC. Meanwhile, Garlinghouse’s previous efforts contributed to the enactment of the first U.S. stablecoin regulation in June 2025.
On the other hand, some XRP community members have criticized Hoskinson for crashing out on Brad. They urge Hosknison to focus on helping shape the Clarity bill rather than going all out against Brad for no good reason.
Scott says markup hearing postponed, talks continue
The Senate Banking Committee delayed its scheduled markup hearing for the Clarity Act last week, after Coinbase’s CEO Brian Armstrong voiced his opposition.
Tim Scott (R-S.C.), the Senate Banking Committee Chairman, also announced last Wednesday that the committee will postpone the markup meeting as negotiations continue. He claimed that he has spoken with leaders across the crypto industry and the financial sector, as well as his Senate colleagues, and that everyone remains at the table working in good faith.
Scott also explained that the progress with the Clarity bill is a result of months of detailed bipartisan discussions and input from law enforcement, investors, and innovators. The goal is to deliver clear rules that protect consumers and strengthen the country’s national security. Scott believes that clear regulations will ensure the future of finance is built in the United States.
Meanwhile, Senate Democrats on the Banking and Agriculture Committee met on Friday via phone calls with crypto industry leaders to discuss the bill. However, Coinbase’s Brian Armstrong is concerned about some decisions of the latest effort to draft new rules.
According to Armstrong, the bill will likely erode the U.S. CFTC’s authority and deprive crypto companies of the ability to offer rewards on customer holdings of dollar-pegged stablecoins. Contrary to Garlinghouse’s views, the Coinbase boss believes the industry WOULD rather have no bill than pass a bad one. However, he is confident that the right outcome will be achieved if the ongoing efforts continue.
Meanwhile, the Senators spearheading the bill are concerned that it will not get enough votes to advance out of the committee. They, however, believe the bill will need the support of at least 7 Democrats to pass.
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