Hoskinson: CLARITY Act No Be Crypto Salvation

The U.S. Senate reject motion to proceed with the CLARITY Act after the legislation get 49 votes in favor and 50 against, wey no reach the required 60 vote threshold. Charles Hoskinson respond for new video, say im don warn for more than one year say the legislation no get realistic road to approval.

The Cardano founder argue say the failure no be only about the final vote. Im criticize the attempt to regulate one broad industry with one bill, the political wahala around President Donald Trump crypto businesses and plans to expand the CFTC responsibilities without giving the agency enough resources. The outcome leave the regulatory environment around ADA, wallets, DeFi protocols and other digital asset infrastructure without lasting congressional framework.

Hoskinson Talk Say the Legislation Build on Wrong Model

Hoskinson describe the CLARITY Act as over broad attempt to regulate different kinds of digital assets, market intermediaries and regulatory responsibilities inside one legislative package.

Im argue say the administration no study regulatory systems wey already dey operate for the European Union, Japan, South Korea, the United Arab Emirates, Switzerland and other jurisdictions. Im specifically criticize David Sacks, call am “probably the worst czar in the history of czars” and claim say the White House crypto adviser no show interest for lessons from other global markets.

According to Hoskinson, different regulatory issues no suppose combine inside one political package. Im cite the GENIUS Act, wey address stablecoins separately, as the correct approach. The next step, im talk, suppose be to modernize the definition of security and create dedicated category for digital securities.

Such framework fit cover ICOs, tokenized assets and platforms wey dey issue digital securities through updated SEC rules. Assets wey Hoskinson consider as digital commodities, including Bitcoin, Cardano and XRP, go instead fall under separate framework wey modernized CFTC go support.

Hoskinson description of Cardano as commodity represent im regulatory position, no be official congressional determination of ADA legal status.

Trump Crypto Businesses Turn Political Obstacle

Big part of Hoskinson criticism focus on the political environment around the legislation. Im talk say Trump crypto businesses allow Democrats to connect the whole bill with the president personal financial interests.

Hoskinson agree with the argument say U.S. president no suppose actively participate for markets wey presidential statements, regulatory appointments and government decisions fit affect. Im talk say the restriction suppose apply to every president, no matter political affiliation.

Im still criticize crypto executives wey, for im view, use political donations to secure access to the White House and then dey promote photographs with government officials without delivering durable legislative outcome. Im describe the process as political theater wey short term business interests replace work on legislation wey suppose govern multitrillion dollar industry for decades.

Im criticism no limit to one political party. Hoskinson connect Democratic demands for stronger transaction monitoring with attempts to introduce back doors into cryptocurrencies. Im accuse the Republican administration of turning crypto regulation into partisan project while dem ignore predictable objections wey involve ethics, enforcement, regulator funding and national security.

Im argue say Democrats no get plenty reason to compromise before the midterm elections if dem believe say dem fit gain control of Congress and rewrite the legislation under more favorable political conditions.

Hoskinson Propose Separate Laws and Technical Standards

Instead of one comprehensive bill, Hoskinson propose sequence of narrower and connected regulatory packages.

The first go define digital securities and modernize existing SEC rules. Second one go regulate digital commodities while e go provide the CFTC with additional staffing, funding and legal authority. Third one go update KYC, anti money laundering and counterterrorism financing rules so that compliance fit implement through smart contracts, zero knowledge proofs and selective disclosure.

Hoskinson also propose make the National Institute of Standards and Technology join to develop technical standards for decentralization, throughput, digital asset classification, interoperability and government procurement of blockchain systems.

Under that model, industry participants go receive measurable technical requirements, while government agencies go get common foundation to evaluate and buy blockchain infrastructure. Im also call for reciprocal regulatory agreements with other jurisdictions, to reflect the cross border nature of digital asset transfers and blockchain markets.

The final part of the video move beyond legislation and return to the original purpose wey Hoskinson assign to cryptocurrency. Im talk say crypto no create to make governments increase token prices, but to allow individuals to control their money, identity, data and privacy.

Hoskinson urge the industry to stop dey look to Washington for salvation, close the CLARITY Act chapter and return to building products, privacy infrastructure and decentralized networks wey no fit shut down by single institution.

“CLARITY was never salvation,” Hoskinson talk. “Close the chapter. Close the page. Get back to work.”