Cardano Founder: Clarity Act Could Be "Weaponized," Stifling Industry Innovation

Odaily News Cardano founder Charles Hoskinson has raised strong doubts about the U.S. "Digital Asset Market CLARITY Act," suggesting it could have long-term negative impacts on implementation, political risks, and industry structure.

Hoskinson stated that even if the bill passes, it could take up to 15 years for rulemaking and implementation, leading to prolonged industry stagnation under uncertainty. He pointed out that the current U.S. political environment (especially post-FTX) has tightened regulations, with new projects potentially being default-classified as securities, thereby stifling innovation.

He further warned that the bill could be "weaponized" by future administrations, becoming a political tool where different parties in power might use its provisions to target specific projects or industry participants.

Additionally, Hoskinson criticized the bill for being overly complex and "U.S.-centric," neglecting global regulatory coordination. He also noted that it focuses too much on peripheral issues like stablecoin yields while failing to address the industry's core problems.

He believes this structural design could actually benefit established projects (like Cardano, XRP, Ethereum) while creating higher barriers for new entrants, further exacerbating industry centralization trends.