Cardano founder: Clarity Act may be "weaponized," stifling industry innovation.

Cardano founder Charles Hoskinson strongly criticizes the U.S. Digital Asset Market Clarity Act, arguing that it could have long-term negative impacts on implementation, political risks, and industry structure. Hoskinson states that even if the bill passes, the rule-making and implementation process could take up to 15 years, leading to prolonged stagnation in the industry amidst uncertainty. He points out that the current U.S. political environment (especially after the FTX incident) has tightened regulations, potentially classifying new projects as securities and stifling innovation. He further warns that the bill could be weaponized by future administrations, becoming a political tool that different parties could exploit to target specific projects or industry participants. Furthermore, Hoskinson criticizes the bill's complex and overly "America-centric" design, ignoring global regulatory coordination and focusing too much on peripheral issues like stablecoin yields instead of addressing core industry problems. He believes this structural design might actually benefit established projects (such as Cardano, XRP, and Ethereum) while creating higher barriers to entry for new entrants, further exacerbating industry consolidation.