 
 
Cardano founder Charles Hoskinson has called the Digital Asset Market Clarity Act a “horrific” bill, doubling down on his earlier criticism of Ripple CEO Brad Garlinghouse for supporting the legislation. According to Hoskinson, the bill will turn crypto assets into securities and will not bridge the regulatory gap in the decentralized finance (DeFi) spaces or prediction markets.
Hoskinson Says Clarity Act Will Turn Assets Like XRP To Securities
The Cardano founder used XRP as an example of a token that might be affected by the passing of the Clarity Act. He said that based on the text and the regulatory framework set by this bill, XRP would have been classified as a security at the time that it was launched.
He added that the act states that if a digital asset is created with the intention of raising money for a blockchain network, it is categorized as an investment contract. In this case, that asset is regulated by the US Securities and Exchange Commission (SEC), and it cannot be listed on crypto exchanges; it would have to trade like a security through a broker or dealer.
He further added that under this bill, a digital asset can only be classified as a commodity and fall under the purview of the Commodities Futures Trading Commission (CFTC) if it runs on a mature blockchain. Under the act, a mature blockchain is fully decentralized and not controlled by a single person or group with similar interests.
Per Hoskinson, these conditions would disqualify XRP as a digital commodity, given that, at launch in 2012, it was highly centralized among the founders. The same thing applies to other blockchain networks and digital assets, including Cardano and Ethereum.
 
He noted, “This bill, as written, everything starts as a security. XRP starts as a security. Cardano starts as a security. Ethereum starts as a security. All kinds of things there. Then you have to go to the SEC and tell them I don’t think I’m a security anymore.”
The vocal Cardano founder opined that under this framework, there are no developer protections, and if new digital assets enter the market as securities, they will likely remain securities forever.
JPMorgan Eyes Bullish Surge of Clarity Act Passes
JPMorgan has noted that the passage of the Clarity Act could trigger massive gains in the second half of 2026. The banking giant stated that this bill will provide much-needed regulatory clarity, and this could draw interest from institutional investors.
However, the bill has yet to be passed, as it missed a March 1 deadline amid a stalemate over stablecoin yield. However, negotiations between Democratic and Republican lawmakers are still ongoing.