Cardano Founder Says Even If Clarity Act Passes, It Could Take Years of Rulemaking

Charles Hoskinson, the founder of Cardano, has raised fresh concerns about the future of the Clarity Act.

Specifically, he argues that even if the bill becomes law, its real impact could be delayed for years. Hoskinson argued that the legislation faces both political and structural hurdles.

Key Points

• Cardano founder Charles Hoskinson says the Clarity Act could take years to impact the crypto industry.
• He noted post-passage rulemaking by U.S. regulators may delay the clarity firms are urgently seeking.
• Hoskinson also accuses Coinbase of opposing parts of the bill to protect stablecoin revenue streams.
• He cautions that the bill could expose DeFi developers to legal risks and hinder long-term innovation.

Rulemaking Could Delay Real Impact

Hoskinson’s comments highlight a key issue often overlooked in crypto regulation debates: passing a bill is only the beginning. After approval, agencies like the U.S. SEC and CFTC would need to define and implement detailed rules.

This process can take years, meaning the clarity the industry is hoping for may not arrive anytime soon. For crypto firms seeking immediate regulatory certainty, this delay could extend the current period of uncertainty.

Coinbase Accused of Slowing Progress

Hoskinson also took aim at Coinbase, accusing the exchange of putting its own financial interests ahead of industry progress.

According to him, Coinbase’s resistance to parts of the Clarity Act is less about regulatory principles and more about protecting revenue from stablecoin yields. He claimed the company is primarily concerned with maintaining returns from products linked to USDC.

Stablecoins have become a major source of income for Coinbase, with reports suggesting billions in revenue from reserve-backed earnings. Any restrictions on yield programs could significantly affect that business model.

Concerns Over DeFi and Developer Liability

Beyond stablecoins, Hoskinson warned that the bill could create bigger structural risks for the crypto ecosystem. He criticized provisions that could treat many tokens as securities by default and remove protections for decentralized finance developers.

In his view, this approach could expose developers to excessive legal liability, even for how others use their open-source code. He compared it to holding an author responsible for how readers interpret or act on a book.

He also cautioned that once such a framework becomes law, it could be difficult to reverse. Drawing parallels to long-standing financial regulations, Hoskinson suggested that flawed rules could remain in place for decades and eventually be used in ways that harm innovation.

Other industry leaders, such as Ripple CEO Brad Garlinghouse, believe the current bill is usable as is. He argues that clarity is better than chaos.

Meanwhile, Hoskinson has strongly opposed this view, saying Garlinghouse supports the current bill because XRP already received a “free pass,” stressing that newer projects are at risk.

Uncertain Path Ahead

The Clarity Act continues to move through the legislative process, with further discussions expected in the Senate. Even if the bill passes, the combination of political uncertainty, regulatory delays, and industry disagreements suggests that true clarity for digital assets in the United States may still be a long way off.