Cardano founder Hoskinson attacks CLARITY Act as ADA drops 2% after weekend rally

Cardano (ADA) declined nearly 2% on Monday after founder Charles Hoskinson used a 30-minute YouTube livestream on Sunday to criticize the CLARITY Act and crypto industry leaders supporting the bill, including Ripple CEO Brad Garlinghouse.

The drop reversed a weekend rally that had pushed ADA close to $0.40, a key resistance level the token has struggled to reclaim since December.

Hoskinson argued the proposed legislation grants excessive authority to regulators and warned that compromising on flawed policy could lock the industry into ‘decades of unintended consequences.’

Hoskinson’s critique fuels debate over US crypto policy

Hoskinson’s comments, broadcast on his official YouTube channel during a publicly archived stream, centered on what he described as deep structural flaws in the CLARITY Act.

He argued that, despite more than 130 revisions, the bill still concentrates excessive authority in the hands of regulators, particularly the Securities and Exchange Commission.

Drawing comparisons with historic financial legislation, Hoskinson warned that poorly designed rules could lock the industry into decades of unintended consequences.

“93 years later, have we been able to change it? No. You pass it, you own it forever. Sorry, Brad. It’s not better than chaos,” — Charles Hoskinson, Founder, Cardano, said during the livestream, referring to the Securities Exchange Act of 1933.

Hoskinson also took aim at industry leaders advocating compromise.

“You still got people like Brad saying, well, it’s not perfect, but we just got to get something. Hand it to the same people who sued us. That’s better?” — Charles Hoskinson, Founder, Cardano, he added, criticizing what he sees as acceptance of long-term regulatory overreach.

The comments came as lawmakers reassess the future of the CLARITY Act.

According to updates from the US Senate Banking Committee, the panel postponed a planned markup session to allow for further consultation with industry stakeholders, a move announced by Committee Chair Tim Scott in an official statement published on the committee’s website.

Social buzz spikes, but Cardano price prediction turns cautious

Despite the confrontational tone, Hoskinson’s appearance initially energized Cardano’s online community.

Data from Santiment showed a sharp rise in positive commentary around ADA before, during, and after the broadcast, with 29 bullish posts recorded for every bearish one shortly after the stream concluded.

That surge in optimism helped push ADA to within $0.01 of the $0.40 level, a key psychological resistance zone.

However, broader market conditions quickly weighed on prices. As selling pressure spread across major cryptocurrencies on Monday, ADA gave up much of its weekend gains.

According to data referenced by CoinGecko, the token was trading near $0.35 at the time of reporting, down roughly 2.38 percent on the day and about 8 percent over the past seven days.

For analysts refining their Cardano price prediction, the technical picture remains mixed.

ADA fell to a December low near $0.3355 and has since struggled to decisively reclaim the $0.40 resistance, which aligns with an ascending trendline connecting price lows dating back to June 2023.

Repeated failures at this level have reinforced caution among short-term traders, even as longer-term holders cite strong community engagement as a supportive factor.

Politics, sentiment, and the outlook for Cardano price prediction

Beyond the immediate market reaction, Hoskinson also addressed his relationship with the current US administration, striking a nuanced tone.

While acknowledging cordial ties, he criticized what he described as an expanding push toward custodial controls and pervasive know-your-customer requirements.

“They want to make everything a custodial wallet and every transaction KYC,” — Charles Hoskinson, Founder, Cardano, said, arguing that such policies undermine the principles that originally drove blockchain adoption.

In a separate interview published last week, Hoskinson went further, claiming the current administration has left the US digital asset sector in a weaker position than under former President Joe Biden.

“The very first thing he did was to launch the Trump Coin, and it just felt like the extractiveness has now been institutionalized,” — Charles Hoskinson, CEO, Input Output Global, said, referencing the launch of politically branded memecoins.

Hoskinson also suggested that the introduction of memecoins linked to political figures may have derailed bipartisan momentum on crypto legislation.

In his view, Congress could have advanced both the GENIUS Act and the CLARITY Act before those tokens entered circulation, potentially reducing polarization around digital asset policy.

For investors, these political crosscurrents add another layer of complexity to the Cardano price prediction.

While social engagement metrics point to a resilient and vocal community, price action suggests that regulatory uncertainty and broader market weakness continue to cap upside in the near term.

Looking ahead, analysts say the Cardano price prediction will likely hinge on two factors: whether ADA can reclaim and hold above the $0.40 resistance, and how US lawmakers ultimately reshape crypto policy frameworks.

Until greater clarity emerges, volatility driven by headlines and sentiment swings may remain a defining feature of ADA’s trading behavior, keeping the Cardano price prediction firmly in focus for both short-term traders and long-term holders alike.