The Solana Institute is pressing U.S. senators to keep intact critical protections in the CLARITY Act as momentum builds for a Senate vote this summer — and industry leaders warn that weakening those provisions could drive crypto development overseas.
Kristin Smith, president of the Solana Institute, said in posts on X that the Blockchain Regulatory Certainty Act (BRCA) language tucked into the broader CLARITY Act should remain unchanged when the bill reaches the Senate floor. She and other industry signatories argue the BRCA is essential to protect non‑custodial participants — open‑source software developers, node operators and validators — from being treated as money transmitters under U.S. law. That distinction, Smith says, creates legal certainty between infrastructure and firms that actually control user funds, aligning with last year’s FinCEN guidance.
Industry unity has been notable: “leading founders, CEOs, and investors” from across the sector signed a single letter to Senate leaders asking expressly that these protections not be weakened.
Still, the measure is not finalized. Smith acknowledged recent White House discussions that involved law enforcement reviewing BRCA language and said ethics-related wording in the bill remains unresolved. These debates coincide with a flurry of upcoming policy conversations in Chicago focused on digital asset regulation and market structure, where lawmakers, regulators and industry figures will continue negotiations. Representative Dusty Johnson — who shepherded an earlier version of the bill through the House Agriculture Committee in a bipartisan 47–6 vote — is expected to provide perspective on how House members might react to Senate revisions.
Timing, not just policy, has become a hurdle. Reporting cited by crypto journalist Eleanor Terrett suggests lawmakers are increasingly eyeing the August congressional recess rather than a July 4 signing target. The Senate still must reconcile separate versions passed by the Banking and Agriculture Committees, garner 60 votes to advance debate, navigate cloture votes on amendments, and then return the final bill to the House — a calendar that leaves little room for a quick July finish even if policy disputes are resolved.
What the CLARITY Act would do
- Clarify jurisdiction for digital assets: place decentralized cryptocurrencies such as Bitcoin and Ethereum under the Commodity Futures Trading Commission, while leaving qualifying securities to securities regulators.
- Address stablecoin rules, anti‑money‑laundering requirements, DeFi activities, and the regulatory treatment of blockchain validators and other network participants.
Solana Institute highlights economic stakes: U.S. share of open‑source crypto developers has reportedly fallen from 38% in 2015 to about 19% today. Smith warned that regulatory uncertainty risks sending builders to friendlier jurisdictions — pointing to Singapore and Abu Dhabi as examples of places competing to attract the next generation of blockchain development.
As the CLARITY Act moves through final negotiations, the industry’s appeal is clear: preserve BRCA protections to keep non‑custodial infrastructure legal status explicit, or risk pushing innovation and talent abroad.
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