Journalist
Hassan Shittu
Journalist
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Cardano founder Charles Hoskinson publicly questioned the future of the Digital Asset Market Clarity Act and called for the resignation of President Donald Trump’s crypto adviser, David Sacks.
Hoskinson made the remarks during a Sunday interview on The Wolf of All Streets podcast, where he said he does not believe the CLARITY Act will pass in the current quarter.
He warned that the window for meaningful legislation is narrowing quickly as the 2026 midterm elections approach, adding that a shift in control of the U.S. House could effectively stall the bill altogether.
If no progress is made in the coming weeks, Hoskinson said Sacks should step down, arguing that the crypto industry has deteriorated under his tenure since being appointed in late 2024.
Hoskinson Warns Market Weakness Is Tied to Policy Gaps
His criticism centers on what he described as a lack of regulatory clarity, continued price weakness across the market, and the absence of a stable policy foundation for builders.
Hoskinson pointed to the broader market decline since Trump returned to office, noting that many major cryptocurrencies are down 40% to 50% over that period.
He linked part of the damage to the launch of the Trump-branded memecoin days before the inauguration, which he said drained liquidity from the market at a fragile moment and undermined confidence among both retail investors and regulators.
The CLARITY Act, introduced in May 2025, has been viewed as one of the most important attempts to define crypto regulation in the United States.
It passed both the House Financial Services Committee and the House Agriculture Committee with bipartisan backing.
The bill would establish tests to determine whether digital assets should be treated as securities or commodities, an issue that has long plagued the industry.
Attention has now shifted to the Senate, where the Agriculture and Banking Committees are preparing to hold markups on January 15.
Senate Banking Committee Chair Tim Scott has framed the vote as a hard deadline after months of stalled negotiations, arguing that lawmakers must go on record even if consensus remains incomplete.
Hoskinson’s skepticism reflects broader uncertainty in Washington.
As January Votes Near, Crypto Bills Face Growing Lawmaker Skepticism
Several Democrats and a handful of Republicans have criticized the accelerated timeline, saying unresolved issues remain around ethics rules, conflicts of interest, and the treatment of decentralized finance.
DeFi has become one of the most contentious points, with industry advocates pushing for protections for developers and open-source software, while Democrats warn that overly broad exemptions could increase money laundering and national security risks.
Stablecoin regulation has also drawn criticism from Hoskinson, particularly the GENIUS Act, which he said favors large financial institutions at the expense of retail participants.
He argued that the bill would consolidate power among major Wall Street firms and reshape the crypto market in ways that undermine its original principles.
More broadly, Hoskinson warned against efforts to nationalize crypto or frame it as a purely American product.
Behind the scenes, lobbying has intensified as the January votes approach.
Industry groups have flown dozens of representatives to Washington, including exchanges, token issuers, and infrastructure providers, to press lawmakers for action.
Despite the renewed push, analysts have cautioned that the political backdrop remains unfavorable, with lawmakers increasingly wary of taking risks as campaigns ramp up.
TD Cowen analysts warned weeks ago that the odds of final passage are slipping, with 2027 now a growing possibility.
Further complicating matters, Senate Agriculture Committee Chair John Boozman has shown openness to delaying the markup to secure stronger bipartisan support, even as the White House continues to urge swift action.
