Charles Hoskinson and David Schwartz have issued strong warnings that the long-awaited Digital Asset Market Clarity Act is at risk of being killed by partisan opposition. In separate posts on X, Hoskinson said Democrats are poised to vote against all crypto bills, while Schwartz coined the term "DAM Clarity Act" to capture industry frustration.
Hoskinson, the founder of Cardano, argued that the messaging around the bill was mismanaged by Trump's crypto adviser David Sacks, tying it to Trump-era politics and making crypto a partisan issue. "As predicted, the 2026 talking points are Crypto = Trump = Corruption," he wrote. He believes the left will now fall in line and oppose the legislation, destroying any chance for a stable U.S. framework.
Ripple CTO Emeritus David Schwartz added a sardonic twist, posting: "Pass the DAM Clarity Act." The remark came as the Senate attempts to push the bill through before the August recess. Ripple CEO Brad Garlinghouse also urged lawmakers to pass the bill immediately, saying the industry cannot wait any longer.
The Clarity Act would overhaul market oversight, transferring authority from the SEC to the more crypto-friendly CFTC and expressly defining major coins like XRP as digital commodities. It would also introduce clear security standards to protect investors. However, behind-the-scenes disputes over anti-money-laundering provisions and stablecoin controls continue to delay a vote.
Hoskinson warned that once crypto becomes a partisan weapon, no real regulatory progress can be made. The window for bipartisan action, he said, is closing fast, leaving future projects in regulatory limbo. The stalled bill risks making the U.S. fall further behind other jurisdictions that already offer clear guidelines.
