Cardano founder Charles Hoskinson says Digital Asset Market CLARITY Act could give established tokens like XRP a cleaner line of regulation, though the project sets a default rule for the next generation of crypto projects in the US.
During a recent live broadcast, Hoskinson complained that the framework treats everything as security. That could then force projects to fight through a process he says the SEC could easily weaponize. In the same breath, he suggested that XRP could be among the assets that would become more safe havens under the law’s structure.
Hoskinson says XRP is getting a pass
The LIGHT Act is a proposed piece of US legislation designed to create regulatory framework for cryptocurrencies and digital assets. This bill is moving forward before US lawmakers and there are claims that it can be held anytime in April. In the last live streaming on YouTube, The co-founder of Cardano explained the CLARITY Act as the line between legacy networks and the start of the future.
Interestingly, Hoskinson noted that the Digital Asset Market CLARITY Act could keep established tokens like XRP and perhaps Cardano safe from securities, essentially grandfathering XRP and placing it among the networks likely to benefit from the law’s structure.
However, the same bill leaves decentralized finance without real protections or a path forward. He said “there’s nothing in this for Defy; nothing,” and then pointed to the Uniswap and forecast markets as examples he believes the legislation ignores.
He also used the constant yield struggle as evidence that important parts of the crypto product are not yet on the table. According to him, even Coinbase CEO Brian Armstrong “can’t even get his stablecoins to generate income.” It depends Stablecoin income rules included in the Law.
Totally against the Enlightenment Act
The comments on this live stream didn’t come out of nowhere. Hoskinson has been publicly negative on the CLARITY Act for the past few weeks, calling it a bill that looks like progress on paper but leaves loopholes for regulators to keep projects under securities treatment.
The problem has also spilled over into influential industry divisions, such as Ripple CEO Brad Garlinghouse took the opposite position in public comments, the idea is that the sector should adopt a workable framework and then improve it through reform.
Notably, Garlinghouse’s comments suggest the bill could be passed on a fast schedule, even as leaders like Hoskinson call it flawed. Another industry name that has expressed concern is Coinbase CEO Brian Armstrong. who noted The bill would allow banks to come in and take legal action to prevent them from competing.
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