Cardano Founder Slams "CLARITY Act": It's a "Terrible Garbage Bill" That Will Stifle US Crypto Innovation

Cardano founder Charles Hoskinson recently launched a fierce critique of the US cryptocurrency market structure bill, the "CLARITY Act" (HR 3633), calling it a "terrible garbage bill" that could drag the US crypto industry into deeper regulatory quagmire.
Specifically, the CLARITY Act would classify almost all digital assets as securities by default and grant the US Securities and Exchange Commission (SEC) excessive regulatory authority, potentially killing innovation in the US crypto sector.
In a YouTube live stream on March 3, Hoskinson provided a detailed technical breakdown of the bill. He pointed out that the core design mechanism of the bill is that any newly created digital asset will be classified as an "investment contract asset" by default, placing it directly under SEC jurisdiction.
However, if a project wants to be reclassified as a "digital commodity" regulated by the CFTC, it will face difficult-to-quantify decentralization proof standards, highly subjective "value attribution" tests, and the SEC's potential use of rulemaking authority, leading to indefinite delays for projects.
He emphasized that while mature projects like Cardano and XRP might receive exemptions, this will force all future US crypto innovations to move overseas, ultimately destroying the domestic crypto industry in the long run.
From the legislative process perspective, although the CLARITY Bill has been passed in the House of Representatives, it is still stuck in the Senate, and the White House's March 1 deadline has passed, with no compromise reached among parties.
Hoskinson also stressed that the biggest obstacle is not the structural issues he criticizes, but the lobbying battles surrounding stablecoin rewards.
Moreover, the banking sector has issued warnings that allowing exchanges to offer stablecoin rewards could trigger large-scale deposit outflows.
Overall, Hoskinson believes that rather than letting the industry slowly suffocate under unreasonable restrictions, it is better to fight back and strive for a truly healthy and sustainable space for growth and development.