As discussions continue in the cryptocurrency sector regarding the future of the regulatory framework in the US, former Ripple CTO David Schwartz responded to comments made by Cardano founder Charles Hoskinson about the CLARITY Act.
Schwartz stated that a constructive discussion was needed, arguing that even flawed regulation could be better than a completely unregulated environment.
Hoskinson had previously stated that he was abandoning the CLARITY Act. This bill was expected to pave the way for crypto innovation in the US and provide a clearer regulatory framework for the sector. However, criticisms had been raised that the bill, in its current form, would not have the intended impact.
Hoskinson had argued that the Clarity Act could save tokens like XRP and ADA from being classified as securities, but that the law could harm the crypto industry in general.
Schwartz, in a statement on social media, said that Ripple has always tried not to adopt a self-serving approach in the past. He stated that the company has been careful not to demand regulations that only benefit itself in a way that would harm the industry as a whole, but added that criticism and accountability are natural.
The Ripple executive also stated that the cryptocurrency sector is still in its early stages and that the success of competing projects is important for the growth of the ecosystem. According to Schwartz, competition contributes to the development of the market, legitimizes the sector, and makes it more attractive for both institutions and users.
Schwartz summarized his view on the legislative debate with these words: “Personally, I think that an imperfect bill is better than no bill at all. But at the same time, it makes sense to fight for the best law we can get.”
*This is not investment advice.
