Cardano Founder Praises CLARITY Act Text as Senators Seek to Finalize Ethics Provision

Cardano founder Charles Hoskinson, who has been critical of the CLARITY Act, has praised the latest crypto bill’s text. This comes as senators move to finalize the ethics provision, which could still be one of the major obstacles to the bill’s eventual passage.

Cardano Founder Comments On Latest CLARITY Act Text

In an X post, the Cardano founder praised the latest crypto bill’s text as a massive improvement over the previous drafts. He also commended the Senate Banking Committee Chair, Tim Scott, and others who have been pushing to improve the bill for their leadership.

As CoinGape reported earlier today, the Senate Committee released the draft CLARITY Act text ahead of the May 14 markup. Hoskinson had notably been among the crypto stakeholders who had criticized the crypto bill earlier, over provisions they believed were insufficient to protect the crypto industry.

The Cardano founder, in particular, praised the latest draft text over provisions that protect the DeFi space, including those related to decentralized governance, non-custodial staking, and distributed validator participation. It is worth noting that the latest text also preserves stablecoin rewards, although crypto firms won’t be able to distribute rewards on idle balances.

Ahead of the CLARITY Act’s markup on Thursday, senators are working to resolve lingering issues, including ethics concerns, to secure bipartisan support for the committee vote. Crypto journalist Eleanor Terrett pointed to a meeting today between Republican and Democratic senators, which she noted is likely to center around the ethics provision.

She added that the meeting’s outcome could provide an early indication of where Senator Ruben Gallego and other Democratic members of the committee stand ahead of the markup vote. Last week, Democratic Senator Kristen Gillibrand said that an ethics provision was necessary for the crypto bill’s passage.

Coinbase Reviewing The Details Of The Latest Draft Text

Coinbase’s Chief Policy Officer (CPO), Faryar Shirzad, said that they are currently reviewing the details of the CLARITY Act text. It is worth noting that the top crypto exchange had been active in the negotiations between the crypto and banking industries over the stablecoin yield text.

“It’s clear that this is a strong compromise and a result of hard work from all parties involved. Markups are rarely this exciting, but we can’t wait for the bill to move forward this week,” Shirzad said. Despite the compromise, the banks have indicated that they are not satisfied with the latest draft text.

American Bankers Association CEO Rob Nichols urged bank CEOs to contact their senators about the stablecoin loophole. He stated that the latest text isn’t sufficient to protect bank deposits and prevent deposit flight risk.