Charles Hoskinson, the founder of Cardano, has publicly expressed strong disapproval of Ripple’s CEO Brad Garlinghouse's stance on the Clarity Act. Hoskinson alleges that the bill is not being handled effectively from a political standpoint and attributes this to the Trump administration’s former Crypto Czar, David Sacks, who Hoskinson claims sabotaged its initial bipartisan backing.
The CEO of Input Output Global also indicated that he does not foresee the bill successfully passing within the current political climate. He further cautioned that the opportunity to enact the bill is rapidly diminishing, expressing uncertainty about its passage this quarter.
Hoskinson also directed his criticisms towards David Sacks, who served as the Trump administration's head of cryptocurrency policy. Hoskinson asserted that Sacks should resign if he fails to guide the bill to successful passage. He pointed out that the bill had a significant chance of being enacted until the introduction of a Trump-branded memecoin transformed the cryptocurrency regulation debate into a partisan spectacle.
Garlinghouse Advocates for Imperfect Regulation Over No Regulation
While Garlinghouse supports the Clarity Act, Hoskinson harbors doubts about its passage, and Brian Armstrong, CEO of Coinbase, has voiced opposition. Garlinghouse maintains that even an imperfect bill is preferable to the current absence of clear regulatory frameworks. These views firmly establish him as a prominent advocate for the bill.
The Ripple executive further emphasized that the cryptocurrency industry cannot afford to wait for the bill to be perfected as lawmakers work to integrate the Clarity Act with the broader Crypto Market Structure bill.
He believes that the enactment of the Clarity Act at this juncture would represent a significant victory. The Clarity Act is designed to assign regulatory oversight responsibilities to both the Commodity Futures Trading Commission (CFTC) and the U.S. Securities and Exchange Commission (SEC). In parallel, Garlinghouse's prior contributions were instrumental in the enactment of the first U.S. stablecoin regulation in June 2025.
Conversely, some members of the XRP community have voiced their criticism of Hoskinson's public critique of Brad Garlinghouse. They have urged Hoskinson to focus his efforts on contributing to the shaping of the Clarity bill rather than engaging in what they perceive as unwarranted opposition to Garlinghouse.
Senate Banking Committee Postpones Markup Hearing Amid Ongoing Negotiations
The Senate Banking Committee decided to postpone its scheduled markup hearing for the Clarity Act last week, following public opposition expressed by Coinbase CEO Brian Armstrong.
Tim Scott, the Chairman of the Senate Banking Committee, announced last Wednesday that the committee would delay the markup meeting to allow for continued negotiations. He stated that he had engaged in discussions with leaders from across the cryptocurrency and financial sectors, as well as his Senate colleagues, and that all parties remain committed to constructive dialogue.
Scott further elaborated that the progress on the Clarity bill is the outcome of months of in-depth bipartisan discussions and input gathered from law enforcement, investors, and industry innovators. The overarching objective is to establish clear rules that will safeguard consumers and bolster the nation's national security. Scott expressed his belief that well-defined regulations will ensure that the future of finance is developed within the United States.
Meanwhile, Senate Democrats serving on the Banking and Agriculture Committees held phone consultations on Friday with leaders from the cryptocurrency industry to discuss the bill. However, Brian Armstrong of Coinbase has expressed concerns regarding certain aspects of the latest proposals for new rules.
According to Armstrong, the bill could potentially diminish the authority of the U.S. CFTC and prevent cryptocurrency companies from offering rewards on customer holdings of stablecoins pegged to the U.S. dollar. Contrasting with Garlinghouse's perspective, the Coinbase CEO suggested that the industry would prefer no bill to a poorly constructed one. Nevertheless, he remains optimistic that the ongoing efforts will lead to a favorable outcome.
The Senators spearheading the bill are reportedly concerned about securing sufficient votes for its advancement out of committee. They estimate that the bill would require the support of at least seven Democrats to pass.