Hoskinson Criticizes Garlinghouse Over Clarity Act as Senate Delays Markup
Cardano founder Charles Hoskinson publicly attacked Ripple CEO Brad Garlinghouse for backing the Digital Asset Market Clarity Act, saying the bill is politically mishandled and risks ceding control to hostile regulators. Garlinghouse defends the Clarity Act as an imperfect but necessary step to clarify oversight between the SEC and CFTC after Ripple’s costly SEC fight. Coinbase CEO Brian Armstrong and other critics warn the bill could weaken the CFTC’s authority and limit services tied to dollar-pegged stablecoins. Hoskinson also singled out crypto advocate David Sacks for disrupting earlier bipartisan momentum. Senate Banking Committee Chair Tim Scott has postponed a scheduled markup as negotiations continue; lawmakers say talks include industry, law enforcement and investors, but supporters worry the bill may lack votes to advance. The dispute drew mixed reactions from XRP and Cardano communities: some urged pragmatic engagement, others backed Hoskinson’s push for stronger protections. For traders: the political debate raises short-term sentiment risk and potential volatility for XRP (and related tokens) while any final Clarity Act would materially affect regulatory certainty across altcoins and stablecoin-related services.
Neutral
The news is primarily regulatory and political, creating mixed pressures rather than a clear bullish or bearish catalyst for XRP. Short term: public disagreements and delayed Senate markup increase uncertainty and can amplify volatility and negative sentiment around XRP as traders react to headlines. Market-sensitive events (community disputes, high-profile CEO comments) tend to drive knee-jerk moves, so expect elevated intraday and short-term volatility. Medium to long term: outcome depends on whether the Clarity Act passes and its final provisions. If the bill clarifies market structure in a way favorable to Ripple (e.g., clear CFTC jurisdiction for certain tokens), the long-term impact could be supportive. Conversely, provisions that limit stablecoin services or place restrictive DeFi rules on XRP-related activity would be negative. Because the current state is negotiation and delay, the net effect is neutral — headline-driven swings likely but no sustained directional pressure until legislative text and vote outcome are certain. Traders should monitor Senate developments, comments from key industry figures (Garlinghouse, Hoskinson, Armstrong), and any draft amendments affecting token classification or stablecoin services.