Solana Policy Institute Warns CLARITY Act Must Pass Soon or Risk Losing Billions

The Solana Policy Institute is warning investors that the CLARITY Act must pass soon to unlock significant capital for the digital asset ecosystem. According to Kristin Smith, president of the institute, a pile of money is sitting on the sidelines, waiting for clarity in the regulatory framework.

Smith argues that institutional investors are hesitant to deploy capital due to the legal ambiguity surrounding open-source developers, validators, and non-custodial wallet providers. Section 604 of the CLARITY Act aims to protect these developers from being classified as money transmitters if they don't have control over user assets.

The bill also seeks to exempt non-custodial software maintainers from money transmitter obligations, which is crucial for decentralized networks like Solana. The Senate Banking Committee cleared the bill in May 2026 with a 15-9 vote, pushing it toward a potential floor vote.