Cardano (CRYPTO: ADA) founder Charles Hoskinson rejected Ripple CEO Brad Garlinghouse’s “bad bill is better than no bill” stance, arguing the CLARITY Act makes new crypto projects securities by default while grandfathering XRP (CRYPTO: XRP).
The ‘Security By Default’ Problem
HR 3633, the Digital Asset Market Clarity Act of 2025, passed the House and is currently being debated in the Senate.
The bill requires projects to petition the SEC for graduation to commodity status under CFTC oversight by proving their blockchain achieved “sufficient decentralization.”
The SEC controls the graduation process.
Under the bill, the SEC has 60 days to review petitions but can pause the clock indefinitely by issuing deficiency letters requesting additional documentation.
In a podcast on X on Monday, Hoskinson compared this to FDA approval delays and New York’s BitLicense process.