In a podcast on Monday, Hoskinson warned that the bill could “destroy all future American cryptocurrency projects.”
- Hoskinson stated that his lack of support for the CLARITY bill isn’t just about stablecoin rewards.
- He said that the lack of developer protections and the fact that every new project has to start out as a security are red flags that could hamper future growth.
- Hoskinson added that he doesn’t understand the rush to pass the CLARITY Act, if it can be amended at any time.
Cardano (ADA) founder Charles Hoskinson stated that the latest iteration of the CLARITY Act is a “horrific, trash bill” while explaining why he doesn’t agree with Ripple (XRP) CEO Brad Garlinghouse’s take that “a bad bill is better than no bill.”
“Everything starts as a security,” Hoskinson said during his podcast. “Then you have to go to the SEC and tell them, I don’t think I’m a security anymore… The SEC has to agree with you. And, they can make an argument and say no.”
According to him, legacy tokens like Cardano and Ripple may get grandfathered in, but the long-term impact of the CLARITY Act could “destroy all future American cryptocurrency projects.”
CLARITY Act Will 'Destroy' The Future Of Crypto
The Trump administration might be pro-crypto, but if the democrats win the next election, their platform is likely to be anti-crypto, Hoskinson warned. According to him, their campaign will be one where cryptocurrency equals corruption, and then the CLARITY Act, in its current form, will be weaponized against the ecosystem.
“Instead of having scary Gary rolling the dice with no law and ambiguity in a court that’s favorable to us, they will now have HR 3633 with no developer protections,” Hoskinson said. “How do you broaden the ownership of the token as a security? There’s no token ‘go up’.”
He also noted that the Securities and Exchange Commission (SEC) and the Commodity and Futures Trading Commission (CFTC) historically have not gotten along and then to expect them to cooperate on cryptocurrency regulation once implemented might be a long shot.
What Did Ripple CEO Say About The CLARITY Act?
Garlinghouse has been an advocate of the CLARITY Act, urging the crypto industry to sign off on the regulations. “The door to a deal is wide open. The banks just need to act in good faith and walk through it,” he said as recently as Saturday.
In a January post on X, he said that even if the bill is not perfect, it’s important to have a “clear framework” in place for the industry.
However, according to Hoskinson, if the bill passes in the current form, the crypto industry will lose any power it has to fight back against the SEC, and making amendments to the bill won’t be easy.
“Then why is there a rush to pass it? Why do we have to pass it now, if you believe at any time, we can change the bill?”
– Charles Hoskinson, Founder, Cardano
Cardano Lags Crypto Market Gains
The overall cryptocurrency was in the green on Monday night, up 2.6% in the last 24 hours to around $2.4 trillion. XRP’s price rose 1% to around $1.36 while retail sentiment around the altcoin on Stocktwits remained in ‘bearish’ territory over the past day. Meanwhile, ADA’s price lagged the market, down 0.9% in the last 24 hours. Retail sentiment around Cardano remained in ‘neutral’ territory over the past day.
Read also: Bitcoin Rebounds Toward $70K After US-Iran Clash – ‘Sign Of Life,’ Says VanEck CEO
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