Senate Delays Threaten Cardano's Regulatory Breakthrough

Charles Hoskinson, founder of Cardano, has made a bold assertion that the blockchain platform is poised to "break the internet" as part of a broader effort to reshape the digital asset landscape. His remarks follow a high-profile roundtable discussion on the CLARITY Act, a proposed U.S. legislative framework aimed at clarifying regulatory boundaries for cryptocurrencies. Hoskinson emphasized Cardano’s active role in shaping the Act, stating that the meeting marked significant progress toward bipartisan legislation that could finalize clear rules for the industry by year-end title1^[1]. The CLARITY Act, which passed the House in July 2025, seeks to classify "mature" blockchains as commodities rather than securities, a move that could unlock institutional investment and regulatory certainty for platforms like Cardano title4^[4].

The roundtable, hosted by U.S. lawmakers, brought together key players in the crypto sector, including Ripple, Andreessen Horowitz (A16Z), and representatives from Coinbase, Kraken, and Circle. Hoskinson praised Ripple’s efforts to resolve its ongoing dispute with the SEC over XRP and highlighted A16Z’s influence in advocating for policies that maintain U.S. competitiveness in blockchain innovation title1^[1]. The meeting focused on refining the CLARITY Act’s market structure draft, which outlines how exchanges, issuers, and investors would operate under a unified regulatory framework. This collaborative approach underscores the industry’s push to balance innovation with investor protection title3^[3].

Cardano’s eligibility for "mature" blockchain status hinges on its decentralized structure. The platform operates over 3,000 stake pools, with no single entity controlling more than 10% of its ADA supply. A September 2024 hard fork introduced fully decentralized governance, allowing ADA holders to vote on protocol changes. Analysts argue that these metrics position Cardano among the most decentralized networks, even surpassing Bitcoin in some measures title4^[4]. The CLARITY Act’s criteria—open-source development, operational stability, and lack of centralized control—align closely with Cardano’s design philosophy. However, regulatory scrutiny remains on the involvement of founding entities like the Cardano Foundation and Input Output Global, which must demonstrate minimal influence to avoid "common control" concerns title4^[4].

Market reactions to the CLARITY Act’s progress have been positive. ADA surged 16% to $0.89 following the House vote, with trading volume spiking to $3.09 billion. Institutional interest appears to be growing, as whale wallets accumulated 120 million ADA tokens in recent weeks. Hoskinson has predicted a "gigachad bull run" driven by regulatory clarity, noting that commodity status could facilitate ETF approvals and reduce barriers for traditional financial institutions to offer custody services title4^[4]. The pending Grayscale Cardano ETF application, subject to SEC review by October 2025, may benefit from the Act’s framework, which shifts oversight from the SEC to the CFTC title4^[4].

While the House has advanced the CLARITY Act, the Senate faces a more complex path. Bipartisan negotiations are ongoing, with lawmakers prioritizing fiscal cliff negotiations over crypto legislation. Senate Banking Committee Chairman Tim Scott aims to finalize hearings by September 30, but delays could push implementation into 2026. Once enacted, the Act’s implementation would involve a 180-day timeline for SEC and CFTC rulemaking, with existing blockchains able to apply for maturity certification. However, the Senate’s version of the bill may differ from the House’s, and final approval remains contingent on political dynamics title2^[2].

Cardano’s ecosystem has shown resilience amid regulatory uncertainty. Total Value Locked (TVL) in DeFi protocols reached $349 million in Q2 2025, up 13% quarter-over-quarter. Upcoming upgrades like the Hydra scaling solution and Midnight privacy sidechain are progressing on schedule, with developers citing regulatory optimism as a catalyst for accelerated innovation title4^[4]. Analysts project ADA price targets ranging from $1.00 to $2.00 by year-end, though long-term outcomes will depend on the Act’s Senate passage and the network’s ability to maintain decentralization amid institutional adoption title4^[4].