A growingly fierce conflict is erupting within the crypto industry itself around the Digital Asset Market Clarity Act. This time, the public confrontation has reached the top level: Cardano founder Charles Hoskinson sharply criticized Ripple CEO Brad Garlinghouse for supporting the bill, which is supposed to define the architecture of digital asset regulation in the U.S.
The situation shows how deeply divided the community is on the question: is it better to have an imperfect law now or wait for ‘perfect’ regulation, risking getting nothing at all.
Why Hoskinson Attacks the CLARITY Act
Charles Hoskinson believes that the CLARITY Act initially had a real chance to pass Congress thanks to bipartisan support. However, in his view, the bill was politically spoiled and turned into a toxic asset.
Hoskinson places the main responsibility on the so-called ‘crypto czar’ of the Donald Trump administration—David Sacks. According to him, it was mismanagement and political maneuvering by the administration that destroyed the balance that allowed the bill to move forward.
Hoskinson separately mentions the launch of a memecoin associated with the Trump brand. In his assessment, this step finally turned the crypto regulation debate into a ‘partisan circus,’ where substantive work gave way to political attacks. In such a polarized environment, he warns, the CLARITY Act has almost no chance.
Hoskinson goes even further, stating that if David Sacks is unable to get the bill through the current political landscape, he should step down. At the same time, the head of Input Output Global says directly: the window of opportunity for passing the law is closing rapidly, and he doubts the document will be adopted this quarter at all.
Garlinghouse’s Position: ‘A Bad Law Is Better Than No Law’
Brad Garlinghouse holds a diametrically opposite point of view. The Ripple CEO openly supports the CLARITY Act, admitting that the document is far from ideal, but emphasizing: the absence of rules is worse than any compromise.
According to him, the crypto industry has existed in a state of legal uncertainty for too long. Businesses, investors, and institutional players need clear boundaries here and now, not endless revisions of the bill in hopes of perfect wording.
Garlinghouse also recalls that this pragmatic approach previously helped advance the first federal stablecoin regulation, adopted in the U.S. in June 2025. In his view, the CLARITY Act is a logical continuation of this process.
The bill, in particular, should establish the division of oversight powers between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). For Ripple, which has a long history of conflicts with the SEC, this is a matter of strategic importance.
Coinbase Opposes: Another Blow to Consensus
Additional pressure on the CLARITY Act came from Coinbase CEO Brian Armstrong, who publicly stated that the company is withdrawing support for the bill. In his opinion, the current version of the document contains too many problems.
Armstrong fears that the CLARITY Act will:
- weaken the role of the CFTC
- limit crypto companies’ ability to generate yield on dollar stablecoins
- create excessive regulatory burden
In his words, the position is tough: ‘no law is better than a bad law.’ It was after Coinbase’s statement that the Senate Banking Committee postponed the planned hearing on amending the bill.
What Is Happening in the Senate
Senate Banking Committee Chairman Tim Scott confirmed that hearings on the CLARITY Act have been temporarily postponed. According to him, negotiations continue, and he is in contact with representatives of the crypto industry, the financial sector, and fellow lawmakers.
Scott emphasizes that work on the document has been underway for several months and includes consultations with law enforcement, investors, and technology companies. The goal, he says, remains the same—to create clear rules that protect consumers and strengthen U.S. national security.
However, behind the scenes in the Senate, it is acknowledged: to move the bill out of committee, support from at least seven Democrats will be needed, and that support is far from guaranteed right now.
Division Within the Crypto Community
Notably, even within the XRP community, there is no unity. Some Ripple supporters criticize Hoskinson for his harsh attacks, urging him not to target Garlinghouse personally but to participate in refining the law.
On the other hand, Hoskinson’s position reflects the concerns of many developers and DeFi projects: overly strict or skewed regulation could cement the advantages of large players and stifle innovation.
What This Means for the Market
The story of the CLARITY Act clearly shows: the issue of crypto regulation in the U.S. is no longer purely legal. It has become a political, ideological, and economic conflict within the industry itself.
The outcome of this struggle will determine who sets the rules of the game for years to come—open decentralized ecosystems or a small circle of large companies better prepared for complex compliance.
For now, the CLARITY Act balances between compromise and failure, and public conflicts among market leaders only highlight how high the stakes are.
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