Charles Hoskinson, the founder of Cardano, recently delivered a lengthy critique during a YouTube stream, targeting US cryptocurrency policy and industry figures who have supported it, notably including Ripple CEO Brad Garlinghouse.
Following this commentary, Cardano's market sentiment shifted to bearish on Monday, resulting in a 2% price decrease for its native token, ADA. This decline occurred after a brief rally that had brought the price close to its 30-day high.
According to social metrics platform Santiment, Hoskinson's remarks, which included criticism of Garlinghouse and proponents of the CLARITY Act, generated significant bullish discussion on social media leading into the business week.
Hoskinson's YouTube Interview and ADA's Market Reaction
Santiment Feed's analysis indicated a substantial increase in positive sentiment surrounding ADA both before, during, and immediately after Hoskinson's interview. In the period following the broadcast, there were 29 bullish posts for every bearish one. This surge in positive sentiment coincided with Cardano's price briefly approaching $0.40.
There was a massive spike in bullish sentiment toward Cardano yesterday, followed by an immediate price drop. This was related to founder Charles Hoskinson's interview where he, among other topics:
The price losses observed on Monday impacted most top market cap cryptocurrencies, which had gained value over the weekend. While ADA had initially benefited, the negative market trend eventually caught up. As of the time of reporting, the token experienced an intraday price dip of 2.38%, trading around $0.35. Data from Coingecko indicates an 8% decrease over the past seven days.
Cardano's price had fallen to a low of $0.3355 in December. Since then, the token has repeatedly failed to surpass the $0.4 resistance level, a price point that aligns with an ascending trendline connecting its lowest price points since June 2023.
Criticism of the CLARITY Act
Hoskinson expressed strong disapproval of the CLARITY Act, stating that the bill, despite undergoing 137 revisions, remained fundamentally flawed. He argued that its structure unfairly favors regulators over developers and users. According to Hoskinson, the legislation would still grant excessive authority to the SEC, similar to the approach taken by the previous administration.
As previously reported, the Senate Banking Committee postponed a scheduled markup session for the CLARITY Act last week. This decision followed the withdrawal of support for the bill by Coinbase Chief Executive Brian Armstrong. Chairman Tim Scott announced on Wednesday that the committee would delay its consideration to allow for further discussions with lawmakers and industry stakeholders.
Drawing a historical parallel, Hoskinson referenced the Securities Exchange Act of 1933, noting that it has remained unchanged for decades. He remarked, "93 years later, have we been able to change it? No. You pass it, you own it forever. Sorry, Brad. It’s not better than chaos."
Hoskinson also criticized Garlinghouse's public endorsement of the proposed legislation. He argued that accepting a compromise would solidify regulatory overreach within the cryptocurrency industry.
He questioned, "You still got people like Brad saying, well, it’s not perfect, but we just got to get something. Hand it to the same people who sued us. That’s better?"
Concerns Regarding Government Control Over Crypto
Beyond regulatory debates, Hoskinson indicated he maintained positive relations with the Trump administration, stating he "signed up for freedom" and "a revolution." However, he voiced strong objections to policymakers' efforts to mandate "everything a custodial wallet" and "every transaction KYC."
In a separate interview conducted last week, the CEO of Input Output Group asserted that the current administration has placed the US digital asset industry in a more unfavorable position than it was under former President Joe Biden.
Hoskinson elaborated, "The very first thing he did was to launch the Trump Coin, and it just felt like the extractiveness has now been institutionalized. The US government is participating in it as opposed to some Pump.fun person."
Hoskinson suggested that the launch of memecoins by Donald Trump and Melania Trump has diminished the prospects for bipartisan cooperation on crypto policy in 2025. He believes that Congress might have passed both the GENIUS Act and the CLARITY Act prior to these tokens entering the market.