Charles Hoskinson Says CLARITY Act Won’t Pass, Calls for David Sacks to Resign

TLDR

• Cardano founder Charles Hoskinson says the CLARITY Act will not pass this quarter and blames Trump’s crypto adviser David Sacks for failing the industry
• Hoskinson claims most cryptocurrencies are down 40 to 50% since Trump took office and the industry lacks regulatory clarity
• The Trump memecoin launch damaged chances for bipartisan crypto reform and alienated Democrats, according to Hoskinson
• Senate committees are scheduled to vote on the CLARITY Act this week after it passed House committees with bipartisan support
• Hoskinson criticizes the GENIUS Act for favoring large financial institutions like BlackRock and Goldman Sachs over retail investors

Cardano founder Charles Hoskinson said the Digital Asset Market Clarity Act will not pass this quarter. He called for David Sacks, President Donald Trump’s crypto adviser, to resign over what he describes as failures in the industry.

Hoskinson made these statements during an interview on The Wolf of All Streets Podcast. He warned that Democrats could regain control of the House in November’s midterm elections. If that happens, the current window to pass crypto legislation could close.

The CLARITY Act was introduced in May 2025. It cleared both the House Financial Services Committee and the House Agriculture Committee with bipartisan support. The bill seeks to clarify the roles of the Securities and Exchange Commission and the Commodities Futures Trading Commission in regulating cryptocurrencies.

Senate committees are expected to vote on the bill later this week. This represents a potential milestone for the crypto industry. However, Hoskinson expressed doubt about its passage.

Hoskinson said Sacks had failed the industry in three areas. These include falling crypto prices, lack of regulatory clarity, and the absence of a strong foundation for building projects. He stated that most cryptocurrencies are down 40 to 50% since Trump took office.

The Cardano founder blamed the Trump memecoin launch for damaging bipartisan reform efforts. The memecoin was rolled out ahead of Trump’s 2025 inauguration. Since then, it has lost over 80% of its value from its peak.

Trump Memecoin Impact

Hoskinson believes the memecoin launch severely damaged chances for meaningful bipartisan reform in early 2025. He said if the memecoin had not been launched, Congress might have passed both the GENIUS Act and the CLARITY Act. There was a window when crypto legislation could have been bipartisan.

The memecoin launch created hype for similar tokens without utility. This led to numerous token rollouts, scams, and a crash of the memecoin sector. Many investors suffered losses.

Hoskinson said the launch collapsed crypto from a public perception standpoint. He stated it linked crypto with Trump in a negative way among Democrats. This alienated half the country.

Industry Structure Concerns

Hoskinson also criticized the GENIUS Act, which relates to stablecoin regulation. He argued the bill favors large financial institutions over retail investors. He said it centralizes the industry around BlackRock, Cantor, Goldman Sachs, and Morgan Stanley.

The Cardano founder said these institutions have been handed “the keys to the crypto kingdom.” He warned that crypto laws should be passed carefully with the industry united. The government should work alongside the industry rather than rushing for partisan gain.

Hoskinson criticized Trump’s overall approach to crypto policy. He described the administration as lacking structure and coordination with crypto industry leaders. He said Trump created a “predatory free-for-all” with political donations and influence-seeking without clear policy goals.

The blockchain executive recounted his personal interactions with the administration. He said his invitations to White House events were extended and withdrawn without explanation. When Cardano’s ADA token was named part of the administration’s crypto reserve, he said his team was never contacted.

Regulatory Outlook

Hoskinson warned that the lack of regulatory clarity is likely to persist for years. He said the industry lost its window for reform. He expressed pessimism about getting it back until probably 2029.

Some observers have different views on the delay. CoinFund President Chris Perkins argued that the delay is not necessarily bad. He said it is hard to legislate in a post-Chevron era. The 2024 Supreme Court ruling overturned Chevron Deference, which allowed agencies to interpret vague laws.

Perkins said bills now need to be detailed and prescriptive about what regulators can and cannot do. He thinks the bill gets modularized over time. On Monday, Senators Cynthia Lummis and Ron Wyden introduced the Blockchain Regulatory Certainty Act as a standalone bill.

Senate committees are scheduled to vote on the CLARITY Act on Thursday.

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