Summary
- Charles Hoskinson said he publicly criticised Ripple CEO Brad Garlinghouse for supporting the US virtual asset market structure bill, the CLARITY Act.
- Hoskinson warned that accepting the market structure legislation—which includes tougher DeFi regulation and limits on interest payments on stablecoins—amounts to handing power back to hostile regulators.
- He added that if the industry becomes complacent about short-term regulatory stability, decentralised finance and innovation could be curtailed and the industry could later be exposed to stronger regulation and control.
Charles Hoskinson, founder of Cardano (ADA), publicly criticised Ripple CEO Brad Garlinghouse for supporting the CLARITY Act, a US virtual asset (cryptocurrency) market structure bill.
According to Crypto Basic, a virtual asset-focused media outlet, Hoskinson warned on the 19th (local time) that accepting the market structure legislation—which includes tougher DeFi regulation and limits on interest payments on stablecoins—would be “handing power back to hostile regulators.” He argued that while the bill may appear to provide clarity on the surface, it could in the long run stifle decentralised finance and innovation.
The remarks are seen as a direct rebuttal to Garlinghouse’s earlier comments backing passage of the CLARITY Act, saying that “even if imperfect, clear rules are better than chaos.” Hoskinson added that if the industry settles for short-term regulatory stability, it could face a greater risk of being exposed to stronger regulation and control down the line.
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