Charles Hoskinson has blamed the CLARITY Act's failure on Washington's attempt to regulate the entire digital asset ecosystem at once, rather than using a modular, category-specific approach. In his latest podcast, the Cardano founder called the strategy "omnibus," arguing that it overloaded agencies like the CFTC and undermined decentralized finance. He said the bill's failure was preferable to flawed legislation and noted that he had predicted the outcome more than a year ago, citing his familiarity with the US legislative sector and work with lawmakers.
The Senate needed 60 votes to advance the CLARITY Act, but the measure fell short during Tuesday's procedural vote. Veteran investor Kevin O'Leary said he expected the bill to fail and described its chances of passing as "zero." Speaking at the Avalanche Summit in New York, O'Leary said lawmakers could return to the legislation as soon as early 2027.
Meanwhile, the House Ways and Means Committee approved the Digital Asset Tax Certainty Act on Wednesday. That bill would address tax treatment for staking and mining, reporting requirements, small transactions, and wash sales, adding new pressure on the broader regulatory debate.
