Cardano founder Charles Hoskinson has raised serious concerns about the proposed U.S. Digital Asset Market CLARITY Act, warning that the legislation could require more than ten years to fully implement. He also cautioned that the bill risks being exploited by shifting political forces and may not survive changes in future administrations. Hoskinson’s remarks highlight deep skepticism within parts of the crypto industry about the durability of the proposed regulatory framework.
Hoskinson pointed to the political climate following the collapse of FTX as a key factor shaping the current regulatory landscape. He argued that the fallout from that event has pushed many Democrats toward an increasingly hostile stance on cryptocurrency. This shift, he contends, has produced a regulatory environment that defaults to treating new crypto projects as securities, creating significant barriers for emerging ventures.
According to Hoskinson, this environment disproportionately benefits already-established tokens. He named XRP and Ethereum alongside Cardano as projects that stand to gain entrenched advantages under such conditions. Newer projects, by contrast, would face a much steeper regulatory burden simply by virtue of entering the market after the current rules took shape.
The Cardano founder described the CLARITY Act itself as an overly complicated piece of legislation, likening it to a “Frankenstein’s monster.” He criticized the bill for being too narrowly focused on domestic concerns while failing to account for international regulatory frameworks already in place. In his view, this inward-looking approach leaves the broader industry without the global coherence it needs to function effectively.
Hoskinson also took issue with specific elements of the bill, arguing that it concentrates on peripheral matters such as stablecoin yield rather than addressing the industry’s more fundamental challenges. He suggested that this misplaced focus prolongs uncertainty for crypto businesses and developers operating in the United States. The result, he warned, is a prolonged period of ambiguity that could stifle innovation and investment in the sector.
Originally reported by CoinDesk.
