Cardano inventor Hoskinson doesn’t give a damn about the planned US crypto transparency law
- Cardano founder Charles Hoskinson has attacked the draft Digital Asset Market Clarity Act with unusual vehemence, calling it “appalling garbage.”
- The law is intended to create a comprehensive regulatory framework for digital assets, but Hoskinson sees it as a fundamental flaw.
Charles Hoskinson says new crypto assets will automatically be considered securities, giving the SEC jurisdiction, and that the burden of proof to the contrary falls entirely on developers and project operators.
He argues that even established networks such as Cardano, Ethereum or XRP would have fallen under this classification in their early phases and would therefore have had little chance of developing.
SEC dominance as a core problem
Hoskinson warns that the bill gives the SEC broad powers beyond what the industry has previously experienced. He considers the proposed separation between digital commodities under the supervision of the CFTC and digital securities under the supervision of the SEC to be dangerous.
He describes the structure as a system that gives what he sees as a hostile authority additional points of attack. He is particularly critical of the fact that the path from security to commodity exists formally, but in practice depends on the SEC’s subsequent rulemaking.
This could result in delays, unclear definitions and requirements that are difficult to meet, which slow down new projects and hinder innovation in the USA.
No trust in politics
In addition to the technical criticism, Hoskinson focuses on the political dimension. He accuses the current US government of acting contradictorily and not seriously involving the industry.
Invitations to the White House were withdrawn at short notice, which he sees as a sign of lack of reliability.
If the Democratic Party wins the next election, he fears that the Clarity Act could become a tool that structurally weakens the industry and further strengthens the SEC.
Industry divided
The reactions to Hoskinson’s statements show a clear division. While he sees the Clarity Act as a step backwards, other industry representatives such as Ripple CEO Garlinghouse support the law. They see it as progress compared to the previous regulatory patchwork.
The debate illustrates how different interests are within the US crypto industry and how strongly the question of regulatory responsibility shapes the industry.
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