Cardano founder Charles Hoskinson called the Digital Asset Market Clarity Act “horrific,” renewing his criticism of Ripple CEO Brad Garlinghouse for backing the bill. Hoskinson argues the measure would effectively classify many crypto tokens as securities and would not solve regulatory gaps in DeFi or prediction markets.
Using XRP as an example, he said the bill’s language and framework mean a token created to raise funds for a blockchain would be deemed an investment contract and fall under SEC jurisdiction. That classification, he noted, would prevent such assets from being listed on crypto exchanges and require them to trade through brokers or dealers as securities.
Under the bill, only assets running on a “mature” blockchain—one that is fully decentralized and not controlled by a single person or aligned group—could be treated as commodities under the CFTC. Hoskinson said this standard would disqualify XRP at its 2012 launch due to founder centralization, and could similarly affect networks like Cardano and Ethereum.
He warned that “everything starts as a security” under the draft law and that creators would have to petition the SEC to reclassify their tokens. He argued the bill offers no developer protections and risks locking new assets into perpetual security status.
On the other side, JPMorgan has suggested passage of the Clarity Act could spur significant market gains in the latter half of 2026 by bringing regulatory clarity and attracting institutional investors. The bill missed a March 1 deadline amid a dispute over stablecoin yield, though talks between Democrats and Republicans continue.