Cardano Creator Says XRP Might Get a Free Pass. Here’s why

Crypto commentator Cobb has brought attention to remarks made by Charles Hoskinson regarding XRP and ongoing legislative efforts in the United States.

In a brief but pointed post, Cobb quoted Hoskinson as saying, “It looks like XRP might get a free pass,” attaching a video clip in which the Cardano founder criticized a proposed regulatory framework.

Although Hoskinson did not explicitly name the legislation in the clip, his reference to making “everything a security by default” aligns with criticism directed at the proposed Digital Asset Market CLARITY Act.

The bill, introduced in the U.S. House of Representatives as H.R. 3633, seeks to establish a clearer regulatory structure for digital assets by defining the roles of federal agencies and setting standards for token classification.

Supporters argue that it provides long-awaited clarity, while critics contend that aspects of the bill could expand the authority of the U.S. Securities and Exchange Commission.

Hoskinson’s Critique of the Bill

In the attached video, Hoskinson stated that XRP, along with Cardano, might be “grandfathered in” under the process he described. However, he strongly opposed the bill’s implications.

He argued that passing what he called a “horrific trash bill” would classify digital assets as securities by default and create regulatory attack vectors through bureaucratic mechanisms that could hinder future American cryptocurrency projects.

Hoskinson further asserted that the legislation excludes meaningful provisions for decentralized finance. He said decentralized exchanges such as Uniswap would receive no benefit, nor would prediction markets.

He also referenced Brian Armstrong, suggesting that even yield-bearing stablecoin products would not gain clarity under the proposal. In his assessment, the bill fails to accommodate significant segments of the digital asset industry.

XRP Community Pushback

Cobb’s post brought renewed attention to divisions within the crypto sector, particularly among XRP supporters. Several commenters rejected the implication that XRP’s regulatory position could be described as a free pass.

Users pointed to the multi-year legal battle involving Ripple and the U.S. Securities and Exchange Commission, which began in 2020 and resulted in prolonged litigation and substantial financial penalties. One commenter referenced the reported $125 million penalty and four years of court proceedings as evidence that XRP’s regulatory standing was achieved through sustained legal resistance rather than preferential treatment.

Other responses criticized what they viewed as a shifting narrative from parts of the broader industry. Some argued that during the period of regulatory uncertainty surrounding XRP, support from other projects was limited, making the “free pass” characterization particularly contentious.

Legislative Context and Regulatory Debate

By highlighting Hoskinson’s remarks, Cobb has underscored ongoing disagreements over how digital assets should be regulated in the United States. While the Digital Asset Market CLARITY Act is intended to create a structured legal framework, debate continues over whether its approach would promote innovation or impose restrictive classifications.

Hoskinson’s comments reflect concern about a system in which most digital assets would fall under securities regulation unless explicitly exempted. At the same time, members of the XRP community emphasize the cost and duration of past enforcement actions, arguing that regulatory clarity for any asset should not be framed as an unearned advantage.

Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.

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