Hoskinson's Accusations Against Garlinghouse
Cardano founder Charles Hoskinson publicly attacked Ripple CEO Brad Garlinghouse in a Jan. 18 video, accusing him of promoting a compromise on U.S. crypto legislation that would hand regulatory authority to the Securities and Exchange Commission and force new projects to operate under securities rules by default.
Hoskinson used a lengthy video monologue to criticize what he described as industry willingness to accept the U.S. Clarity Act. He argued that this bill has ballooned to include 137 amendments that would expand SEC oversight, and he contended that the legislation would require crypto projects to "go beg and plead" for regulatory relief.
The sharpest criticism came when Hoskinson named Garlinghouse directly.
"Still got people like Brad saying well it's not perfect but we just got to get something," Hoskinson said. "Hand it to the same people who sued us. Hand it to the same people who put us out of business, who subpoenaed us, who put us in jail."
Hoskinson invoked the Securities Exchange Act of 1933 to argue that flawed legislation becomes permanent. "93 years later, have we been able to change it? No," he said. "You pass it, you own it forever."
Implications for the Cryptocurrency Industry
Hoskinson framed the dispute as a fundamental question about the cryptocurrency industry's purpose.
He warned that accepting the current legislative framework would normalize "custodial wallet" defaults, pervasive know-your-customer requirements, and reversible transactions.
"I didn't sign up to hand the revolution to 15 banks," he said, describing a future where transactions can be "frozen at a whim." He suggested that industry leaders are prioritizing market access over confrontation with regulators.