Charles Hoskinson Casts Doubt on CLARITY Act, Calls Out David Sacks

TLDR

• Charles Hoskinson said the CLARITY Act is unlikely to pass in the current quarter.
• He warned that the bill may be blocked if Democrats regain control of the House.
• Hoskinson demanded that David Sacks resign if the bill fails to move forward.
• He blamed Sacks for the industry’s decline in prices and regulatory uncertainty.
• He criticized the GENIUS Act for favoring large financial firms over retail investors.

Cardano founder Charles Hoskinson voiced doubts about the CLARITY Act’s passage this quarter and criticized Trump’s crypto adviser. He stated that the bill may not clear the Senate in time, warning of legislative delays. He also called for David Sacks’ resignation, citing failures in advancing clear crypto regulation.

CLARITY Act Faces Uncertain Senate Path

Hoskinson said the CLARITY Act is unlikely to pass this quarter, expressing concerns about time running out before midterms. “I don’t think the CLARITY Act is going to pass this quarter,” he told Scott Melker on a podcast. He warned that if Democrats regain control of the House, the bill’s window could close permanently.

Introduced in May 2025, the CLARITY Act advanced through the House Financial Services and Agriculture Committees with bipartisan support. The bill aims to clearly define the regulatory roles of the SEC and CFTC in the crypto sector. Senate Agriculture and Banking Committees are set to vote on it Thursday.

Hoskinson emphasized the urgency, stating that delay risks political shifts that could block future progress. He stressed the need for long-lasting legislation, not rushed compromises.

Hoskinson Blames Sacks for Industry Struggles

Hoskinson directly blamed David Sacks, Trump’s appointed crypto czar, for regulatory setbacks and market underperformance. He said Sacks “utterly failed” the industry and should resign if the CLARITY Act stalls this quarter. “If it doesn’t pass this quarter, I think Sacks should resign,” he declared.

He pointed out that most cryptocurrencies have dropped 40 to 50% since Trump took office in 2025. He linked this decline to weak regulatory leadership and lack of project development support.

Hoskinson argued that the industry lacks clear rules, and leaders failed to protect builders and retail investors. He believes the leadership ignored industry needs. These failures, he said, are undermining trust and delaying progress.

GENIUS Act Draws More Criticism

Hoskinson also took aim at the GENIUS Act, which deals with stablecoin regulation and has drawn wide debate. He claimed it favors financial giants over small developers and individual investors.

He warned that the bill would let Wall Street dominate crypto through regulation. He said the GENIUS Act “handed Wall Street the keys to the crypto kingdom.” The bill’s structure, he argued, tilts the market away from decentralization.

The Cardano founder stressed that crypto should remain global and not tied to any national identity. He cautioned against policies that treat crypto as an American-only asset. “There’s no such thing as an American crypto,” he said.

Hoskinson urged Washington to work with the entire industry instead of pushing rushed, partisan solutions. He advocated for unity and thoughtful lawmaking. The Senate vote on the CLARITY Act remains scheduled for Thursday.

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