- Cardano founder Charles Hoskinson believes the crypto market structure legislation known as the CLARITY Act is unlikely to pass into law in Q1 of 2026.
- Hoskinson also said if the bill fails to pass in Q1, the Trump administration’s ’crypto czar’ David Sacks should resign from his position.
- He also hit out at the GENIUS Act for doing nothing for crypto and instead simply handing over control of the industry to TradFi giants, like BlackRock and Goldman Sachs.
Founder of the Cardano network Charles Hoskinson believes the US Digital Asset Market Clarity Act (CLARITY Act) is unlikely to pass into law this quarter and that “crypto czar” David Sacks should resign over his failure to strengthen the crypto industry.
Hoskinson aired his doubts on crypto influencer Scott Melker’s ‘The Wolf of All Streets’ podcast on Sunday, telling Melker that he doesn’t “think the CLARITY Act is going to pass this quarter.”
Hoskinson further cautioned that if the bill fails to pass before the US midterm elections due in November, the less crypto-friendly Democrats may take back control of the House of Representatives and the opportunity to pass the bill could be lost for the foreseeable future.
If the CLARITY Act does indeed fail to pass into law this quarter as he expects, Hoskinson said Sacks should resign, due to “utterly failing” the crypto industry since stepping into the role in late 2024.
If you’re the czar and you’re in charge of this whole thing, I got to judge you by your track record. Most cryptos are down 40 to 50% since Trump took office. So the industry is unhealthy.
Charles Hoskinson, Cardano founderHoskinson argued that Sacks has failed the crypto industry in three key areas — price action, regulatory clarity, and establishing a foundation on top of which new projects can flourish.
The CLARITY Act was first introduced into the US House of Representatives in May of 2025. Its purpose is to clarify the roles of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission in overseeing the market.
Both the Senate Banking Committee and the Senate Agriculture Committee are expected to vote on the draft bill on Thursday, after which there should be a clearer indication of the likelihood of it passing into law this quarter.
Related: Coinbase Warns Lawmakers: Stablecoin Reward Limits Could Upend Crypto Bill
Hoskinson Slams GENIUS Act as Handing Keys to “Crypto Kingdom” to TradFi
Hoskinson also argued that the much-vaunted stablecoin legislation, the GENIUS Act, which passed into law last year, hasn’t done much at all for crypto, but has instead primarily benefitted large banks and financial institutions.
“It [the GENIUS Act] centralises the industry around BlackRock, Cantor, Goldman Sachs, and Morgan Stanley and all these big guys,” Hoskinson said. He added the legislation has “handed Wall Street the keys to the crypto kingdom.”
Related: Bitcoin Faces Consolidation After Disappointing 2025, Analysts Cautious on Near Term
The Cardano founder also fired a shot at Donald Trump’s approach to crypto — an approach that often seems to revolve around launching Trump-themed memecoins and cutting backroom deals to benefit his own family, rather than implementing policy to foster a healthier industry.
Hoskinson said laws and policies impacting crypto should be formulated carefully and methodically with the backing of a united crypto industry, rather than rushed by the government with minimal industry involvement.
Even if it takes longer to get done, the goal should be to pass rules that last and don’t harm innovation.
Charles Hoskinson, Cardano founderCredit: Source link
