A public disagreement over US crypto regulation has sparked a clash between the Cardano and XRP communities, centering on the proposed Digital Asset Market Clarity Act. The tension escalated after Cardano founder Charles Hoskinson openly criticized Ripple CEO Brad Garlinghouse for his support of the legislation during a January 2026 livestream.
Hoskinson expressed deep skepticism about the bill's origins and direction, sarcastically remarking, "And what we got is Elizabeth Warren wrote the bill, that's leadership we can believe in." He challenged the notion that passing an imperfect bill is preferable to continued uncertainty, directly questioning Garlinghouse's position. Hoskinson argued that granting regulatory power to institutions that have previously sued or shut down crypto businesses may not represent true progress.
The criticism prompted pushback from prominent XRP community members. Vet, an XRP Ledger dUNL validator, reposted Hoskinson's video on X and questioned his approach, writing, "How about focusing on helping shape the Clarity Bill instead of crashing out on Brad for no reason, Charles?"
Garlinghouse has consistently advocated for a pragmatic approach to regulation, reiterating in a recent X post that the search for a "perfect law" should not hinder workable regulatory progress. He emphasized that "clarity instead of chaos" is essential for the sector's long-term health, arguing that the Crypto Market Structure Act aligns with this goal. Garlinghouse previously stated, "At Ripple and personally, we know firsthand that clarity is better than chaos; the success of this bill is the success of crypto."
The Clarity Act aims to define whether digital assets are securities or commodities and determine which agencies should oversee them. The bill represents a potential step toward legal certainty amid years of regulatory ambiguity. However, the legislation faces challenges, with reports suggesting the White House may withdraw support if Coinbase doesn't return to negotiations over stablecoin yield provisions. Coinbase CEO Brian Armstrong has noted the company is working to find common ground with banks on these issues.
This controversy follows the 2025 passage of the GENIUS Act (Guiding and Establishing National Innovation for US Stablecoins Act), which Garlinghouse and other industry leaders supported. The current clash highlights divergent philosophies within the crypto industry regarding engagement with regulatory authorities.
