Cardano Founder Criticizes Ripple CEO on Clarity Act Support

Cardano founder Charles Hoskinson has taken a jab at Ripple CEO Brad Garlinghouse following his recent support for the Digital Asset Market Clarity Act. 

Hoskinson’s public disagreement with Garlinghouse has drawn backlash from some XRP supporters, who accuse him of attacking Ripple despite the company’s commitment to regulatory clarity.

Key Points 

• Hoskinson rejects Garlinghouse’s position, warning that accepting flawed legislation hands power back to hostile regulators. 
• His public criticism of Ripple’s CEO has triggered backlash among segments of the XRP community. 
• Jungle Inc and other XRP figures pushed back, questioning Hoskinson’s role during Ripple’s legal battle with the SEC. 
• Some community members sided with Hoskinson, arguing that once the Clarity Act passes, it will be nearly impossible to amend. 

Cardano Founder Challenges Ripple CEO’s Stance on the Clarity Act 

Despite widespread criticism of the Clarity Act, particularly over DeFi restrictions and the potential ban on stablecoin yields, Garlinghouse has continued to back the bill. He argues that, although imperfect, the legislation offers more certainty than the regulatory chaos of the previous SEC administration. 

However, Hoskinson rejected this position, contending that accepting flawed legislation for “some clarity” effectively returns control to the same regulators who previously sued and constrained crypto firms. 

Moreover, he warned that once such laws pass, they become tough to amend, citing the enduring Securities Exchange Act of 1933. 

Jungle Inc Shade Cardano Founder 

In a statement, Jungle Inc questioned Hoskinson’s role during Ripple’s fight for survival and its extensive lobbying efforts. For context, Ripple experienced regulatory uncertainty firsthand when the U.S. SEC sued the company in December 2020 over alleged violations of securities laws tied to XRP sales. 

Garlinghouse later disclosed that Ripple spent up to $150 million defending the case. Following the lawsuit, he actively engaged lawmakers in Washington, D.C., in pursuit of clearer crypto regulation, with Hoskinson praising him as a leading industry advocate for the Clarity Act. 

In Jungle’s view, given Ripple’s costly experience with unclear regulation, securing regulatory clarity, even if imperfect, offers a practical path forward. 

Mixed Reactions Trail Hoskinson’s Commentary 

Meanwhile, other community members also criticized Hoskinson over his public remarks against Garlinghouse. Community analyst Cryptoinsightuk recalled that Hoskinson once labeled XRP holders as conspiracy theorists and supported the SEC during the height of the Ripple lawsuit. Although he shares Hoskinson’s broader goal of financial freedom, he still condemned the Cardano founder’s public attack on Garlinghouse.

In response, XRPL dUNL validator Vet suggested that Hoskinson should focus on helping shape the Clarity Act rather than publicly clashing with Garlinghouse. 

However, some users fully backed Hoskinson, arguing that Garlinghouse erred by supporting a version of the Clarity Act that removes yield from stablecoins. Others agreed with Hoskinson’s view that once the Clarity Act passes, changing the law would be nearly impossible. 

Relations Between XRP and Cardano Communities Hang in the Balance

Meanwhile, it remains unclear how the latest controversy will affect relations between Cardano and XRP holders. Both communities have only recently begun mending ties after a heated online feud during the peak of the Ripple lawsuit.

Although Hoskinson previously labeled XRP holders as conspiracy theorists, he later apologized, invited them to participate in the Midnight airdrop, and announced plans for a yield-bearing opportunity for XRP holders. He also disclosed intentions to support Ripple’s RLUSD stablecoin on Cardano. However, in light of the renewed dispute, the future relationship between both ecosystems remains uncertain.