Hoskinson Warns of Regulatory Risk for XRP Under CLARITY Act

Charles Hoskinson, founder of Cardano, has expressed concerns about the CLARITY Act, a bill supported by major crypto figures. In a March 3 livestream, he argued that the bill creates serious regulatory risk for digital assets in the U.S., including XRP.

Hoskinson pointed out that under the bill's security-by-default structure, all new digital assets start as securities by default. To escape this classification, a project must petition the SEC and prove its blockchain qualifies as a 'mature blockchain system.'

Hoskinson applied this test to XRP directly, noting that when it launched in 2012, the network was centralized around its founders and Ripple Labs controlled the token distribution. This would have meant XRP started as a security.

He outlined four 'attack vectors' within the bill that an adversarial SEC could use to block projects from ever graduating to commodity status. These include the 60-day review clock, open-source development, wallet ownership verification, and value attribution.