Charles Hoskinson, Cardano founder, backs the Clarity Act for protecting open-source developers.
May 15, 2026
The Clarity Act, also referred to as the Transparency Act, holds significant importance in the realm of cryptocurrency regulation in the United States. It is currently making rapid progress, with the Senate Banking Committee set to discuss and vote on it on May 14. A newly revised 309-page draft of the CLARITY Act has recently been released by the US Senate Banking Committee after months of preparation since January. This latest version of the bill has garnered much attention from various stakeholders.
Notably, Cardano (ADA) founder Charles Hoskinson has shared his thoughts on the CLARITY Act. Hoskinson expressed that the revised draft represents a significant enhancement compared to earlier versions, which had raised some concerns, particularly in regard to protections for decentralized finance activities. The updated version of the bill has addressed a number of issues that were previously contentious among crypto companies, which is seen as a positive development within the industry.
During discussions around the CLARITY Act, Charles Hoskinson emphasized the importance of including a provision (Section 604) to safeguard open-source developers. He adamantly opposed suggestions to remove this clause, arguing that holding developers accountable for illicit actions committed by unknown users of their software would be unjust and detrimental to the open-source innovation landscape. Such a move, he believes, would pose a serious threat to developers and hinder the growth of open-source projects.
As the dialogue around the CLARITY Act continues, Coinbase has reviewed the latest details of the draft text while engaging in conversations with both crypto companies and banking institutions. The exchange has been actively involved in discussions concerning the provisions related to stablecoin yields in the revised legislation and has welcomed the compromises that have been introduced in the updated text. Despite the revisions made to the stablecoin sections, some banking groups remain opposed to certain aspects of the bill.
Rob Nichols, CEO of the American Bankers Association, has urged bank executives to express their remaining concerns to senators, warning about potential risks such as deposit flight for traditional banks. The ongoing discussions and debates surrounding the CLARITY Act reflect the complex nature of cryptocurrency regulation and the diverse perspectives within the industry. It remains to be seen how these discussions will unfold as stakeholders continue to provide feedback and input on the proposed legislation.
