Cardano founder Charles Hoskinson has expressed concerns over the proposed U.S. Digital Asset Market Clarity Act of 2025, which could classify several digital assets, including XRP, as securities at launch. The bill, H.R. 3633, has passed the House and is under Senate consideration. It aims to clarify crypto regulations by dividing oversight between the SEC and CFTC.
Hoskinson warns the bill’s structure could impose new regulatory risks, requiring projects to prove their transition from securities to commodities. Under the bill, tokens like XRP, Cardano, and Ethereum would initially be considered securities if issued by a founding team for network development.
He noted that XRP’s early development and distribution were closely tied to its founding team, potentially failing the bill’s criteria for a mature blockchain. The legislation could allow regulators to delay or deny a project’s transition from securities classification, potentially entrenching regulatory power over crypto projects.
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