One of the founders of crypto has openly launched an attack on Ripple and its CEO Brad Garlinghouse, accusing the company of creating the CLARITY Act in ways that benefit Ripple and put a burden on any other blockchain project in the industry.
Charles Hoskinson, the founder of Cardano, did not give up.
The Great Criticism
Hoskinson’s central argument is that the latest version of the CLARITY Act, created with Ripple’s influence, would make any new blockchain project a security by default while presenting a huge risk to Ripple and XRP. In his opinion, this was no accident. It’s a calculated move by a high-income company to lock in its position while dragging the ladder behind it.
“They are trying to pass a law that destroys the entire environment while protecting it,” he said.
He also expressed great concern about the responsibility of open-source developers, saying that the current language in the bill can reveal independent developers’ responsibility to limit the rules just to build on the blockchain. For a space that relies heavily on open source code, that could be the end of the industry.
The Prime Argument
Hoskinson went further, pointing to the distribution of Ripple tokens as evidence that the company has never needed corporate support or partnerships. He said that Ripple gave himself what he called the most important billions of dollars in current figures, so he had enough money to fight the SEC alone without asking for public support.
“I didn’t give myself 70% of ADA,” he said bluntly, drawing a contrast to his way of distributing Cardano tokens.
His argument was that Ripple fought the SEC because of its commercial interests, not because of the many benefits of the crypto industry, and that the belief of the people of XRP that Hoskinson should help them financially does not understand what is happening and who needs help.
CLARITY Act and What’s at Risk
Hoskinson’s frustration with the CLARITY Act extends beyond Ripple in particular. He also said that once laws like these are enacted into law, they are almost impossible to change, pointing to the Securities Exchange Act of 1933 as a 93-year-old example of how financial regulation works.
He said that he proposed a solution: to create a new definition of digital security that will include the disclosure of the blockchain, 24/7 liquidity and the ability to trade on the exchange, which would solve the conflict of stablecoin yield and bring all parties including banks to the table. Those ideas, he says, were ignored.
His warning is strong. Pass the wrong law now and it will be weaponized within two or three years by whoever is in political power at the time.
The Community Reaction
Predictably, the XRP community pushed back hard. Supporters have accused Hoskinson of attacking Ripple out of competitive jealousy, arguing that he only exacerbates these concerns because Cardano stands to lose if XRP and Ripple gain legal recognition.
Hoskinson put it bluntly, saying that the failure to separate the conflict from the person creating it is also part of the problem. He cited decades of social media use and what he called poor epistemic hygiene as reasons why meaningful discussions about policy have become impossible in the crypto space.
The question companies need to answer before May is simple: Who exactly is the CLARITY Act being written for?
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