Hoskinson Warns of Cryptocurrency Regulatory Risks in Proposed U.S. Bill

Cardano founder Charles Hoskinson has expressed concerns about the proposed Digital Asset Market Clarity Act of 2025, which could have far-reaching implications for the cryptocurrency industry.

The bill, currently under consideration in the Senate, aims to create a clearer regulatory framework for cryptocurrencies by dividing oversight between the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

Hoskinson warned that the legislation could classify many blockchain tokens as securities by default, forcing projects to prove to regulators that they should later be treated as commodities.

In a fact-based conversation, Hoskinson asked whether XRP would have been considered a security at its launch under the bill's current structure. According to him, the legislation assumes that newly launched digital assets begin as securities if they are issued or distributed by a founding team to fund network development.

Hoskinson pointed out that under this framework, tokens could later transition to commodity status only if the underlying blockchain becomes sufficiently decentralized, at which point oversight would move from the SEC to the CFTC.