- Hoskinson criticizes Garlinghouse over CLARITY Act support.
- Pushback on SEC’s increased power.
- Broader impacts on ADA, XRP, and DeFi protocols.
Charles Hoskinson criticized Ripple CEO Brad Garlinghouse for endorsing the CLARITY Act, which he labeled as flawed for expanding SEC authority. Garlinghouse views it as progress in establishing crypto regulations, despite potential risks.
Charles Hoskinson, Cardano’s founder, criticized Ripple CEO Brad Garlinghouse on January 18, 2026, during a livestream on X, addressing Garlinghouse’s support for the CLARITY Act discussed by the US Senate Banking Committee.
The event signifies ongoing debates over crypto regulation, impacting major industry players and raising concerns about increased SEC power and possible shifts in crypto oversight.
Charles Hoskinson expressed his disapproval of the draft legislation that he described as granting excessive power to the Securities and Exchange Commission (SEC). The act, poised to shape regulatory frameworks, impacts both the crypto industry and related markets significantly. Brad Garlinghouse previously praised the CLARITY Act, highlighting it as overdue legislation providing practical frameworks while safeguarding consumers.
“And you still got people like Brad saying, well, it’s not perfect, but we just got to get something, you know, it’s better than no clarity. Handed to the same people who sued us.” – Charles Hoskinson, Founder, Cardano (Source)
This clash exposes differing views on regulation’s role in innovation and market clarity.
The immediate community response highlights a division over the regulation versus innovation debate. Cardano (ADA) and Ripple (XRP), among others, may face impacts depending on the act’s final structure. The draft proposes keeping crypto under SEC oversight unless proven decentralized. Potential implications extend to DeFi protocols, with stakeholders wary of the act’s consequences on tokenized assets. The broader crypto industry watches closely for developments that could set precedents for regulatory approaches towards digital assets.
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