Charles Hoskinson, founder of Cardano, voices criticism of U.S. Crypto Regulation Bill CLARITY Act
April 1, 2026
Charles Hoskinson, the mastermind behind Cardano and Midnight, has strongly criticized the contentious CLARITY Act, a proposed cryptocurrency regulation bill up for discussion in the US. Hoskinson contended that the implementation of this law could be a lengthy process, potentially susceptible to changing political tides, and may place new crypto projects at a structural disadvantage.
Recent iterations of the CLARITY Act, currently in the negotiation phase within the US Congress, have come to light. While there seems to be progress on finding common ground regarding stablecoin yields, disagreements persist on key matters like decentralized finance (DeFi) and the priorities of the Democratic faction. Consequently, the bill has not progressed to a stage where it can be brought to a vote in the Senate.
Hoskinson conveyed that even if the legislation is approved, it would demand a prolonged and intricate regulatory journey, cautioning that it could stretch out over 15 years. He also cautioned that laws might be leveraged as a tool depending on the ruling political party. As per Hoskinson, a potential change in government, especially post-2029, could lead to exploiting loopholes in the existing text in different ways.
According to Hoskinson, the prevailing regulatory landscape was substantially shaped post the FTX collapse. He noted that this event had a transformative impact on how Democrats perceive the crypto industry. While bipartisan support existed previously, a more stringent stance was adopted toward the sector in the aftermath of FTX. Hoskinson asserted that this change also presents hazards for policymakers, as the political consequences of aligning with the sector have heightened.
A major critique by Hoskinson was that the present approach automatically designates new ventures as securities. He argued that this complicates the growth trajectory for startups, hinting at deliberate delays in regulatory processes and the SEC lacking ample motivation to reevaluate project classifications.
The structure, as per Hoskinson, bestows an advantageous position upon established major crypto assets, asserting, “Cardano, XRP, and Ethereum might thrive, but emerging projects might struggle to stay competitive.” He explained that this framework imposes substantial burdens on new projects, akin to the rigors of an initial public offering (IPO) procedure.
Hoskinson also faulted the prevalent focus in the industry discussions on stablecoin returns. Deeming this topic as overshadowing fundamental issues, he criticized the overall regulatory framework as excessively convoluted and technically unprepared. Additionally, he highlighted a dearth of technical expertise in the legislative realm.
Highlighting the escalating entanglement of the crypto sector in political strife, Hoskinson observed that it has turned into a battleground, particularly during the Trump era, complicating bipartisan consensus. He further remarked that the Democrats’ negative discourse on crypto has exacerbated this polarization.
Hoskinson raised concerns that US legislators have not adequately factored in the global and decentralized nature of cryptocurrencies. He cautioned that US regulations risk misalignment with global markets if they do not align with regulatory standards in Europe, the Middle East, and Asia.
