Hoskinson Slams Garlinghouse Over CLARITY Act Support, Warns of Innovation Risks

Cardano founder Charles Hoskinson publicly criticized Ripple CEO Brad Garlinghouse in a recent weekly crypto rollup video, targeting his support for the CLARITY Act and warning the proposed legislation could fundamentally reshape how digital assets are regulated in the United States.

Hoskinson argued the bill risks classifying the majority of crypto projects as securities by default, drawing direct comparisons to enforcement tactics previously employed by former SEC chair Gary Gensler. He suggested Garlinghouse backs the framework primarily because it would benefit Ripple and XRP, potentially reducing competition from smaller projects and startups across the broader ecosystem.

Beyond competitive concerns, Hoskinson flagged serious developer liability risks embedded in the legislation. He warned that the bill could expose open-source developers to unlimited legal responsibility, even in cases where they have no direct control over how their code is deployed. He pointed to Tornado Cash developers as a cautionary example, arguing that without adequate legal protections, software innovation in crypto could stall significantly.

The CLARITY Act has already faced delays stemming from disagreements over stablecoin yield provisions, and uncertainty has grown following crypto czar David Sacks stepping down. According to Polymarket data, the probability of the bill being signed into law in 2026 has dropped to 52%, down from over 60% earlier in the week, partly driven by Coinbase's opposition to the stablecoin yield compromise.

Hoskinson also responded to backlash from the XRP community, who accused him of targeting the project. He pushed back firmly, noting his documented history of publicly defending Ripple during its legal battle with regulators and stating those positions remain on record.

He acknowledged that the broader conversation around the CLARITY Act has grown increasingly polarized, with debates shifting away from policy substance and toward personal attacks.