Cardano Founder Hoskinson Criticizes Ripple CEO Garlinghouse Over Support for US Crypto Clarity Act

Heated Exchange Over Regulatory Approach

Cardano founder Charles Hoskinson delivered a passionate critique of Ripple CEO Brad Garlinghouse during a livestream on January 18, focusing on what he views as an overly accommodating stance toward US crypto regulation ^[1][2]. The confrontation centers on the ongoing debate surrounding the Digital Asset Market Clarity Act, also known as the CLARITY Act.

Hoskinson took aim at Garlinghouse's willingness to accept incomplete or flawed legislation in pursuit of regulatory progress ^[1]. Referencing recent statements from the Ripple CEO, Hoskinson paraphrased Garlinghouse's position as acknowledging imperfection while insisting that the industry must simply achieve something ^[1].

Concerns About Expanding SEC Authority

The Cardano founder has emerged as one of the most vocal critics of the CLARITY Act ^[1]. He pointed to the bill's growing complexity, noting that it has reportedly expanded to include more than 130 amendments ^[1]. According to Hoskinson, these revisions risk granting the Securities and Exchange Commission extensive new powers over the crypto industry.

Hoskinson warned that the bill could be beneficial for some companies while harmful to others, and that blind support might confuse the public and hinder market growth ^[2]. "The law is not perfect, and favoring one company over another can backfire," he stated ^[2].

His primary concern focuses on provisions that would treat most new tokens as securities by default ^[1]. This framework would force projects to seek exemptions from the same regulatory authorities that have spent years pursuing enforcement actions against the industry ^[1].

Garlinghouse's Defense of Regulatory Clarity

In contrast to Hoskinson's position, Garlinghouse has publicly supported the draft legislation, arguing that regulatory clarity represents a necessary step forward even if the final product falls short of perfection ^[1]. The Ripple CEO contends that ongoing uncertainty has stifled innovation within the United States, and that constructive dialogue with lawmakers offers a superior path compared to rejecting compromise from the outset ^[1].

Despite his sharp criticism, Hoskinson acknowledged that Garlinghouse operates from genuine conviction. "He's being principled. That's genuine passion and concern. He got into the space as a cypherpunk from the early days. He's trying to support what this technology was meant to be about and for," Hoskinson said ^[2].

Industry Reactions and Political Context

The exchange has triggered mixed reactions within the crypto community ^[1]. While some XRP supporters accused Hoskinson of hypocrisy, others endorsed his principled opposition to legislation they consider rushed and fundamentally flawed ^[1]. The XRP community has criticized Hoskinson for allegedly undermining regulatory progress, though others have backed his skeptical stance, highlighting the growing division in industry opinion over the bill ^[2].

The broader legislative context has become increasingly complex. The Senate Banking Committee delayed markup of the crypto market structure bill after crypto exchange Coinbase publicly withdrew its support on January 14 ^[2]. Reports indicate the White House is now considering dropping support for the legislation ^[2].

Despite these setbacks, Committee Chair Tim Scott reaffirmed that negotiations would continue, stating he had held conversations with leaders across the crypto industry, financial sector, and both parties in Congress ^[2]. If enacted, the bills would represent the first comprehensive federal statutes providing a clear framework for crypto market structure, replacing reliance on regulatory guidance and litigation ^[2].

The clash between Hoskinson and Garlinghouse underscores how crypto policy has become increasingly polarized as lawmakers weigh the Digital Asset Clarity Act, with both sides agreeing that the stakes for US market structure, investor protection, and innovation are significant ^[2].