Hoskinson Claims CLARITY Act Gives Ripple Unfair Advantage
Cardano founder Charles Hoskinson launched a sharp critique of Ripple and its CEO, Brad Garlinghouse, on March 29, accusing them of shaping the proposed CLARITY Act to stifle competition. In a video, Hoskinson argued the bill is a "death trap" designed to classify most digital assets as securities by default, a framework that would uniquely benefit Ripple's regulatory position while creating significant barriers for other blockchain projects. The public infighting has drawn market attention to the bill's legislative path, where odds for it passing into law in 2026 have fallen to 52%, a 13% drop in a week, according to data from Polymarket.
Cardano Holders Face 43% Loss as Shorts Reach 3-Year High
While the founders engage in a war of words, Cardano's market position reflects deep investor pain and extreme bearish sentiment. The 365-day Market Value to Realized Value (MVRV) ratio for ADA has fallen to -43%, indicating that the average wallet active over the past year is holding at a significant loss. Simultaneously, perpetual futures funding rates on Binance have hit their most negative level since June 2023, signaling a heavily crowded short trade. This combination of steep holder losses and peak bearish positioning creates conditions ripe for a short squeeze. The last time these indicators aligned in mid-2023, ADA rallied approximately 300% from a price of $0.25 over the subsequent 18 months. As of this week, ADA was trading near $0.26.
Developer Liability Emerges as Key Industry Risk
Hoskinson's criticism extended beyond competitive dynamics to highlight a systemic risk within the CLARITY Act: developer liability. He warned the bill could expose open-source developers to unlimited legal responsibility for how their code is used, even if they have no direct control. Drawing parallels to legal actions taken against developers associated with Tornado Cash, Hoskinson argued that removing legal safeguards would discourage innovation and create profound uncertainty across the decentralized finance (DeFi) ecosystem. This potential to hold software creators liable for the actions of users represents a significant threat to the open-source ethos that underpins the digital asset industry.
