Crypto Regulation Debate: Cardano vs XRP Over the Digital Asset Market Clarity Act
In the ever-evolving landscape of cryptocurrency regulation, a recent dispute has drawn attention to the differing perspectives within major crypto communities. This discord primarily involves the Cardano and XRP communities and centers around the Digital Asset Market Clarity Act, a proposed legislative measure aimed at defining the regulatory framework for digital assets in the United States.
Understanding the Dispute: Hoskinson vs. Garlinghouse
The disagreement surfaced when Charles Hoskinson, a prominent figure in the blockchain space, openly criticized Brad Garlinghouse, CEO of Ripple, over his apparent endorsement of the Clarity Act. This critique did not sit well with the XRP community, leading to a public exchange of opinions. Reports indicate that frustration is mounting among lawmakers, particularly concerning Coinbase’s stance on the Clarity Act.
Advertisement Banner
Hoskinson’s Critique and Garlinghouse’s Response
The conflict became evident during a livestream in January 2026, where Hoskinson expressed his discontent with Garlinghouse’s support for the Clarity Act, despite its perceived flaws. He sarcastically remarked on the bill’s origins, questioning the wisdom of passing a potentially imperfect piece of legislation. Hoskinson challenged the notion of assigning regulatory authority to institutions with a history of legal actions against crypto entities.
His comments prompted a response from Vet, a respected member of the XRP community and XRP Ledger dUNL validator. Vet criticized Hoskinson’s approach, suggesting that instead of publicly attacking Garlinghouse, he should focus on contributing positively to the legislative process. This exchange highlights the differing strategies within the crypto community when dealing with regulatory challenges.
The Significance of the Clarity Act for Crypto Communities
The Digital Asset Market Clarity Act is one of several legislative initiatives introduced during a crypto-friendly administration. Its primary goal is to clarify whether digital assets should be classified as securities or commodities and determine the appropriate regulatory oversight. For the XRP community, engaging with lawmakers represents a pragmatic path forward after years of legal battles.
However, not everyone shares this perspective. Charles Hoskinson and others express concerns about the act’s potential drawbacks. Sources suggest that the White House might reconsider its support for the Clarity Act if Coinbase does not resume negotiations over stablecoin yield provisions. Meanwhile, Coinbase CEO Brian Armstrong has indicated ongoing efforts to reconcile differences with banks on yield-related matters.
The Broader Context: The GENIUS Act
In 2025, President Donald Trump signed the Guiding and Establishing National Innovation for US Stablecoins Act, known as the “GENIUS Act,” into law. This legislation aimed to provide greater regulatory clarity for stablecoins in the United States. Brad Garlinghouse, along with other industry leaders, voiced support for this initiative, highlighting the ongoing efforts to establish a robust regulatory framework for digital assets.
Editorial Integrity and Standards
Our Editorial Process is dedicated to delivering comprehensive, accurate, and impartial content. We adhere to stringent sourcing standards, and each article undergoes meticulous review by our team of expert technology editors. This rigorous process ensures the reliability, relevance, and value of our content for our readers.
