Cardano founder slams CLARITY Act over token security classification

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Cardano founder slams CLARITY Act over token security classification

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Anastasiia Chabaniuk

03.03.2026

Cardano founder slams CLARITY Act over token security classification — Hoskinson questions CLARITY Act impact

Cardano founder Charles Hoskinson said that if the CLARITY Act were passed, XRP would likely have qualified as a security at the time of its launch. The bill, formally known as H.R. 3633, aims to establish clearer regulatory rules for the U.S. crypto industry.

According to Hoskinson, the proposal shifts the burden of proof onto crypto projects, requiring them to demonstrate that they are no longer securities. In his view, this approach could create prolonged regulatory uncertainty, Coinpedia reports.

He noted that when XRP launched in 2012, the XRP Ledger was highly centralized and largely dependent on its founders, who later formed Ripple Labs. Under the framework proposed in the bill, such a token could have been classified as an “investment contract asset,” effectively a security. Hoskinson argued that in its early stage, XRP — like many other projects — did not meet the standards of a mature, decentralized blockchain.

He added that in its current form, the legislation effectively means that “everything starts as a security,” including Ethereum, Cardano and other major blockchain networks. Hoskinson warned that the bill could create significant barriers for new U.S. crypto startups. He believes its wording may give regulators, including the SEC, additional tools to challenge token classifications or delay market entry. A key concern, he said, is how difficult it would be for a project to shed security status once it is applied at launch.

Ripple stance and support for the bill

Ripple CEO Brad Garlinghouse has taken a different view. He has publicly backed the CLARITY Act, arguing that clear rules are preferable to regulatory uncertainty. In his opinion, a defined legal framework would support the growth of XRP and the broader crypto industry.

Garlinghouse previously said the chances of the bill passing in the coming months are high, with several analysts and industry figures also expressing confidence in its approval.

The debate surrounding the CLARITY Act highlights a broader divide within the crypto sector. While some fear tighter regulation, others argue that regulatory clarity is essential for long-term industry stability. If adopted, the legislation could significantly reshape how crypto assets are classified in the United States, particularly at launch, setting an important precedent for the global market.

Previously, JPMorgan said the CLARITY Act could define the future of crypto markets and institutional investment flows.

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