Hoskinson Warns of Regulatory Risks and Uncertainty for Crypto Industry

Charles Hoskinson, founder of Cardano and Midnight, has weighed in on the proposed CLARITY Act in the US Congress. The legislation aims to regulate digital assets, but Hoskinson believes it may take years to implement and could be vulnerable to changes in political power.

The CLARITY Act is still being negotiated in Congress, with lawmakers trying to close final gaps before a full Senate vote. However, Hoskinson warns that even if the bill passes, rulemaking could stretch for 15 years or more, slowing down the process.

He also expressed concerns about the potential for politicians to 'weaponize' the law depending on who is in power. 'If the Democrats win in 2029, there are avenues in the existing text that they can use to weaponize the CLARITY Act,' he said.