Charles Hoskinson has again publicly criticized Ripple CEO Brad Garlinghouse over his support for the Clarity Act, describing the current version as a “horrific, trash bill.”
Hoskinson’s remarks came in response to Garlinghouse’s repeated backing of the legislation. While the Ripple CEO has argued that “clarity is better than chaos,” the Cardano founder believes the bill, in its present form, could severely damage future U.S. crypto innovation.
Key Points
- Hoskinson calls the Clarity Act a “horrific” bill, clashing with Ripple CEO Garlinghouse.
- He says the proposal could classify new crypto projects as securities by default.
- Garlinghouse believes imperfect clarity is better than prolonged regulatory chaos.
- A missed March 1 deadline on stablecoin yields adds fresh uncertainty to the bill.
“Security by Default” Concerns
Hoskinson’s main objection centers on provisions he claims would treat new crypto projects as securities by default. According to him, such a framework would make it nearly impossible for emerging networks to gain liquidity, secure exchange listings, or build a user base.
He argued that legacy projects such as $XRP, Cardano, and Ethereum could be “grandfathered in,” while newer startups would face regulatory barriers from day one. In his view, this would entrench established players and block the next generation of American crypto ventures.
Hoskinson also said the bill strips out developer protections and creates procedural pathways that regulators could use to keep projects classified as securities indefinitely. He compared the risk to past regulatory bottlenecks, arguing that excessive bureaucracy could stall innovation for years.
Cardano Founder says current version of CLARITY Act is an “horrific, trash bill”.
“THIS IS WHY I’M OPPOSED TO THE BILL” #crypto pic.twitter.com/augYw17h5u
— Altcoin Daily (@AltcoinDaily) March 3, 2026
Ripple’s Position
Garlinghouse has taken a different stance. In January, the Ripple CEO reaffirmed his support for the Clarity Act despite acknowledging its imperfections. He stressed that regulatory certainty, even if incomplete, would be more constructive than prolonged ambiguity.
According to Garlinghouse, the crypto sector needs a workable framework that clearly defines the roles of the SEC and the CFTC. He has encouraged industry leaders to remain engaged in the legislative process and push for amendments rather than abandoning the bill entirely.
Previously, Garlinghouse also made it clear that Ripple would not support any legislation that jeopardizes $XRP’s legal clarity. Following years of legal battles, $XRP secured a federal court ruling confirming it is not a security, a milestone Ripple says it will not allow to be undone.
Notably, Hoskinson suggests that Ripple is backing the bill in its current form because it does not affect $XRP’s position. In his words, “You climbed up the ladder and then pulled it up so no one else can climb up with you.”
Deepening Industry Divide
The disagreement highlights a growing split within the industry. While some firms believe progress, even if imperfect, is necessary to move forward, others fear that locking in flawed language could institutionalize harmful standards.
Hoskinson dismissed suggestions that his criticism stems from being excluded from negotiations, stating he had participated in discussions for years before key protections were removed. He also argued that the bill does little to address DeFi or protect decentralized developers.
Key Deadline Missed
Notably, the Clarity Act missed its March 1 deadline after banks and crypto firms failed to resolve a dispute over stablecoin yields. The deadline, set by White House Crypto Council Executive Director Patrick Witt, passed without a compromise.
Crypto companies want permission to offer regulated rewards on stablecoins like USDC. Banks, however, are concerned about deposit flight from low-yield savings accounts and are therefore pushing for strict limits or a ban on interest-like returns.
Senate Banking Committee action is now expected later this month. Without a deal, institutional inflows that some analysts expect by 2026 could be delayed. JPMorgan recently said that passage of the Clarity Act by mid-2026 could serve as the catalyst needed for a major bull run.