Hoskinson confirms XRP may gain “free pass” if Clarity Act passes. Clarity Act debate exposes deep crypto industry divisions. Security by default model sparks fairness and competition concerns.
A widely circulated video on X captured Cardano founder Charles Hoskinson delivering pointed criticism at Ripple CEO Brad Garlinghouse while confirming a crucial detail about how the proposed crypto market structure bill could ultimately position digital assets like XRP within the United States regulatory framework.
His comments have intensified debates as to whether the legislation could reshape competitive dynamics by granting clearer standing to certain established digital assets while placing heavier compliance burdens on emerging blockchain projects.
In the clip, Hoskinson argued that supporting the proposed bill would effectively classify most digital assets as securities by default while potentially allowing established cryptocurrencies like XRP to escape that starting point, a scenario he summarized by stating that “it looks like XRP might get a free pass,” reinforcing concerns that regulatory clarity may not apply evenly across the market.
Also Read: Bitcoin at Breaking Point as $71,000 Level Sparks Major Showdown
Hoskinson Signals XRP Could Receive a “Free Pass”
Hoskinson addressed how the draft legislation may define digital assets under federal law, stressing that projects would begin as securities by default and would need to “go beg, borrow, plead, and steal” to move out of that category.
According to Hoskinson, such a framework would create bureaucratic attack vectors that regulators could use against future American crypto projects, thereby discouraging innovation at its earliest stages.
He explained that startups depend on early liquidity, exchange listings, and user growth to survive, yet a security by default model could prevent them from accumulating traction before regulatory clearance arrives. Consequently, he warned that developers may either abandon U.S. markets or struggle to compete against networks that already possess recognition or political leverage.
Direct Criticism of Ripple CEO Brad Garlinghouse
Beyond confirming XRP’s possible regulatory advantage, Hoskinson directly criticized Ripple CEO Brad Garlinghouse for publicly supporting the legislative push despite its perceived flaws. He argued that backing a “bad bill” simply to secure some level of progress undermines the broader industry, insisting that “no bad bill is better than just no bill.”
Hoskinson further accused Garlinghouse of “climbing up the ladder and pulling the ladder up so no one else can climb,” framing his criticism as a warning against regulatory structures that favor incumbents while restricting new entrants. He suggested that endorsing such a framework resembles the same gatekeeping dynamics the crypto industry has long criticized in traditional finance.
DeFi Omission and Competitive Concerns Intensify Debate
Beyond XRP’s potential positioning, Hoskinson criticized the bill for lacking explicit direction on decentralized finance, noting that platforms such as Uniswap, along with prediction markets and yield-bearing stablecoin issuers, remain without clearly defined pathways under the proposed structure.
Additionally, he framed the broader issue as one of competitive balance, suggesting that early clarity for select networks could entrench dominant players while forcing smaller builders to navigate complex regulatory processes that consume time and resources.
The debate unfolds as lawmakers continue refining digital asset legislation under President Donald Trump’s administration, increasing the political and economic stakes tied to how classification standards ultimately take shape.
Also Read: Egrag Crypto: XRP Fractal Points to $14-$16 Zone, But Here’s What You Should Know
Related
