Cardano Founder Slams Ripple CEO Over Clarity Act: 'You're Handing Keys To The SEC'

Core Viewpoint - The debate over the Senate's Clarity Act highlights a division in the crypto industry, with some leaders arguing that the bill grants excessive power to the SEC and could hinder innovation, while others believe it provides necessary regulatory clarity [1][6]. Group 1: Perspectives on the Clarity Act - Charles Hoskinson, founder of Cardano, criticized Ripple CEO Brad Garlinghouse for supporting the Clarity Act, arguing that it gives too much power to the SEC and enforces flawed regulations that favor banks over innovation [1][3]. - Garlinghouse praised the Clarity Act as a significant step forward, asserting that clarity is preferable to chaos and expressing optimism that issues can be resolved during the markup process [2][7]. - The current draft of the Clarity Act categorizes all cryptocurrencies as securities by default, requiring projects to demonstrate sufficient decentralization to avoid SEC oversight [3][4]. Group 2: Concerns Over Regulation - Hoskinson contended that accepting flawed regulations for the sake of clarity could lock in restrictions for a generation, even as technology evolves [5]. - Brian Armstrong, CEO of Coinbase, aligned with Hoskinson, criticizing the bill for imposing a "de facto ban on tokenized equities" and limiting innovation through excessive regulatory power [6]. - Garlinghouse argued that the existing regulatory chaos has already pushed innovation offshore, and he believes that lawmakers can address SEC power issues during the markup process rather than rejecting the bill entirely [7][8]. Group 3: Legislative Developments - The Senate Banking Committee postponed its scheduled vote on the Clarity Act due to backlash from industry leaders, allowing time for lobbying efforts to amend the bill [9]. - The delay poses a risk of losing momentum for the bill or potentially leading to further dilution of its provisions [10].