Hoskinson Cites 'Omnibus' Approach as Reason for CLARITY Act's Failure

Cardano founder Charles Hoskinson attributes the failure of the CLARITY Act to its overly broad approach, which he describes as 'omnibus'. This strategy attempted to regulate the entire digital asset ecosystem at once, rather than taking a modular, category-specific approach. According to Hoskinson, this approach overloaded agencies like the CFTC and undermined decentralized finance.

Hoskinson also criticized US legislators for failing to consult and negotiate extensively with various stakeholders before introducing the bill. He notes that they did not build a coalition or study existing regulatory frameworks in other regions, such as Europe's MiCA regulation and the Abu Dhabi Global Market digital assets framework.

Hoskinson emphasizes that addressing cryptocurrency regulation in fragments could have made it easier for lawmakers to resolve individual regulatory questions and build bipartisan agreement around each area. He suggests separating components into stablecoins, digital securities, commodities, custody, taxation, and decentralized finance (DeFi).