Solana Policy Institute’s Kristin Smith Warns Crypto Rules May Be Hard to Undo
Kristin Smith says SEC and CFTC rules finalized before summer 2028 could become difficult to reverse, putting pressure on the crypto industry to accelerate its policy push after Congress failed to advance market structure legislation.
Kristin Smith, president of the Solana Policy Institute, said crypto industry rules finalized by the SEC and CFTC before summer 2028 could become difficult to reverse. Her warning comes after Congress failed to advance a market structure bill, leaving the agencies as the primary route for near-term digital asset policy.
Agencies Become the Main Policy Battleground
The Senate’s Clarity Act stalled on September 15, 2026, after receiving a 49–50 vote rather than the 60 votes needed to advance. The bill sought to clarify which digital assets fall under SEC securities oversight and which belong under CFTC commodities jurisdiction.
With Congress unable to deliver legislation, agency rulemaking could determine the industry’s regulatory framework. Smith argued that rules finalized within the next two years may gain enough procedural and institutional durability to make a later reversal substantially harder.
A rulemaking process that begins in late 2026 and takes 18 to 24 months would land near the summer 2028 deadline Smith identified. That timeline makes the next two years especially important for crypto companies, developers and policy groups seeking clearer operating conditions.
The agencies have already demonstrated that they can act without new legislation. A joint SEC-CFTC interpretive release issued around March 2026 classified several digital assets, including Solana, as digital commodities rather than securities.
Solana Policy Institute Pushes for Specific Rules
Smith pointed to the GENIUS Act and changes to IRS broker rules as examples of policy efforts that produced results for the industry. The institute has also pursued agency engagement rather than waiting for Congress to revisit market structure.
In 2026, the Solana Policy Institute held more than 300 meetings with policymakers. Its July 9, 2026 comment letter to the CFTC called for:
- Exemptions for non-custodial wallet software.
- A compliance framework that supports 24/7 blockchain markets.
- Formal recognition of blockchain-based recordkeeping.
These proposals reflect the practical questions facing the Solana ecosystem as regulators define responsibilities for software developers, wallet providers and continuously operating digital asset markets.
What This Means
Smith’s warning shifts the policy emphasis from waiting for a comprehensive congressional bill to securing workable agency rules before the procedural window closes. For Solana, the March classification as a digital commodity offers a potentially favorable starting point, but the broader framework remains unsettled.
Market participants should watch for formal SEC and CFTC rulemakings, the CFTC’s response to the institute’s July letter and renewed congressional efforts. If the 18-to-24-month timetable holds, delays could have lasting consequences: rules established before summer 2028 may shape the industry well beyond the current political cycle.