Solana Institute CEO Kristin Smith has urged the U.S. Senate to preserve developer protections in the CLARITY Act as more than 200 crypto firms and organizations push for the bill to advance before August.

Commenting on the legislation’s progress, Smith said in a June 9 thread on X that the bill has a realistic chance of advancing through the Senate, making it important for lawmakers to preserve protections for open-source developers and blockchain infrastructure providers.

Citing an industry-backed letter, Smith said more than 60 crypto founders and executives, including Solana co-founder Anatoly Yakovenko, urged senators to maintain strong protections for software developers within the bill.

She argued that open-source developers, validators, and non-custodial wallet providers do not take custody of user assets or execute transactions on behalf of customers and therefore should not face the same regulatory treatment as brokers or custodians.

Her remarks come as support for the CLARITY Act grows across the digital asset industry. 

According to crypto advocacy group Stand With Crypto, more than 200 crypto companies and organizations recently sent a separate letter to the Senate urging lawmakers to bring the legislation to a floor vote without delay. The coalition said the bill had already undergone months of bipartisan negotiations and should now proceed to formal debate.

Smith points to separate bill protecting developers

Drawing attention to related legislation, Smith referenced the Blockchain Regulatory Certainty Act, a bipartisan proposal introduced in January by Senators Cynthia Lummis and Ron Wyden.

According to Smith, the measure would provide legal certainty for software developers and blockchain infrastructure providers that do not control customer funds or transactions. 

Legislative text released alongside the proposal states that the bill seeks to prevent non-custodial developers from being classified as money transmitters solely because they publish software code or maintain network infrastructure.

Smith argued that similar protections should remain part of the CLARITY Act as Senate lawmakers continue reviewing the market structure framework.

Momentum around the legislation has increased in recent weeks. As reported by crypto.news, the House Ways and Means Committee is simultaneously examining seven separate crypto tax proposals covering stablecoins, staking, mining, lending, charitable donations, wash-sale rules, and disclosure requirements while Senate negotiators continue work on market structure legislation.

Industry groups warn the legislative window is narrowing

Pressure to advance the CLARITY Act has also intensified as analysts question how much time remains on the congressional calendar.

Last week, Galaxy Digital head of research Alex Thorn lowered his estimate of the bill becoming law in 2026 to 60%, down from 75% in May. According to Thorn, the legislation must continue moving through the Senate before lawmakers leave Washington for the August recess because election-related activity could limit opportunities for major crypto legislation later in the year.

A separate assessment from JPMorgan, led by managing director Nikolaos Panigirtzoglou, reached a similar conclusion. The bank said unresolved disagreements surrounding stablecoin yield provisions and the approach of midterm elections could complicate efforts to secure final approval.

Smith’s position also aligns with recent comments from U.S. Securities and Exchange Commission Commissioner Hester Peirce. Speaking at the IC3 Blockchain Camp at Princeton University, Peirce said many blockchain projects involve publishing open-source software, which she described as a protected activity under the First Amendment.

Peirce added that developers should not automatically be treated as financial intermediaries simply because third parties use their code.

The debate comes as SEC Chair Paul Atkins continues reshaping the agency’s approach to digital assets after pledging to move away from the enforcement-focused strategy adopted under previous leadership.

The Better Business Bureau’s (BBB) National Advertising Division (NAD) is referring prediction market platform Kalshi to regulatory authorities after the company declined to participate in an inquiry into its social media advertising practices, adding another layer of scrutiny to the fast-growing event trading platform.

In a statement published Monday, NAD said it will refer the matter to the appropriate regulatory authorities, including relevant state Attorneys General, for possible enforcement action.

The inquiry examined whether Kalshi’s influencers and affiliates clearly disclosed paid relationships in social media promotions and whether the company took adequate steps to comply with Federal Trade Commission endorsement guidelines.

According to the BBB, Kalshi declined to participate in NAD’s voluntary self-regulatory review of its advertising practices. As a result, the organization will also notify the social media platforms where the advertising appeared.

“At issue for NAD was whether material connections between Kalshi and influencers or affiliates were clearly and conspicuously disclosed in social media advertising,” BBB said.

Crypto influencer John Wang joined Kalshi in August.
Source: John Wang on X.com.

Kalshi’s advertising practices have also drawn scrutiny from Media Matters for America, a nonprofit media watchdog organization, which highlighted the platform’s viral marketing campaigns on TikTok and Instagram that promoted prediction trading as a “side hustle.”

Related: Kalshi joins Polymarket in sweeping user bans to head off insider trading

Prediction markets continue rapid growth despite regulatory scrutiny

Social media marketing has fueled Kalshi’s explosive growth, helping the platform attract new users and drive trading volumes tied to real-world events. 

A Kalshi spokesperson told Bloomberg that the company is on track for a $1.5 billion annualized revenue run rate, momentum that helped secure a $1 billion funding round valuing the company at $22 billion.

Kalshi is a leading centralized prediction market platform alongside decentralized rival Polymarket. Source: Bitget Wallet

Despite an ongoing jurisdictional dispute between state regulators and the Commodity Futures Trading Commission (CFTC) over event contracts, as well as allegations of insider trading, prediction markets continue to gain traction among retail and institutional participants.

A May research report from Bernstein argued that the sector is entering an “institutional” era, with analysts citing a block trade executed on Kalshi as evidence of improving liquidity and more efficient price discovery.

“We believe the introduction of block trading and bespoke contracts could expand participation from institutional investors seeking targeted exposure to event risks,” the Bernstein analysts wrote.

Related: Prediction markets legal battles heat up in Minnesota, Rhode Island

TLDR

• White House officials will meet law enforcement groups to address concerns tied to the CLARITY Act.
• Law enforcement representatives argue that a developer protection clause could affect financial crime investigations.
• Senate leaders continue negotiations as they work to secure enough votes for a floor debate.
• More than 200 crypto organizations signed a letter urging lawmakers to advance the bill.
• Senator Cynthia Lummis reaffirmed support and called for passage of the CLARITY Act.

White House officials will meet law enforcement groups on Wednesday to address concerns tied to the CLARITY Act. The meetings focus on specific provisions that agencies believe could affect illicit finance investigations. The discussions come as Senate leaders weigh whether the bill can secure enough votes for floor debate.

Law Enforcement Scrutiny and CLARITY Act Provisions

Administration officials scheduled the sessions after several groups raised objections to a developer protection clause. The clause stems from the Blockchain Regulatory Certainty Act and seeks to shield certain software developers from liability. However, law enforcement representatives argue that the language could restrict investigative authority in crypto-related cases. They describe the concern as structural and limited to enforcement mechanics.

Sources familiar with the talks told journalist Eleanor Terrett that officials aim to clarify the clause’s scope. The group plans to outline how the language might create legal defenses during financial crime probes. In response, administration representatives intend to gather feedback and explore possible adjustments. The ethics provisions in the bill also remain unresolved and require further negotiation.

Senate Negotiations and Industry Pressure Intensify

The Senate placed the bill on its legislative calendar earlier this month, yet leaders still lack firm commitments for a floor vote. Supporters continue private negotiations following the Senate Banking Committee’s approval in May. Former White House official Patrick Witt said discussions are narrowing the list of open issues. He stated that negotiators continue to work through specific concerns raised by lawmakers.

Senator Cynthia Lummis reaffirmed her support and urged swift passage of the measure. “I did not spend years on this issue to watch another country write the rules that govern the assets Americans invented,” Lummis said. She added, “Let’s pass the Clarity Act.” Her remarks reflect continued backing from key Republican sponsors.

Meanwhile, more than 200 organizations signed a joint letter urging Senate leaders to advance the legislation. The signatories include Coinbase, Ripple, Kraken, Circle, Andreessen Horowitz, and Binance.US. The letter states that the bill would define federal oversight and clarify regulatory responsibilities. Industry representatives argue that clear rules would keep digital asset development inside the United States.

Brad Garlinghouse echoed that position in public comments this week. He stated that lawmakers have an opportunity to establish domestic crypto standards. Negotiators continue discussions as the White House meetings proceed on Wednesday.

FIFA has named Kraken the Official Crypto Exchange Supporter of the FIFA World Cup 2026. FIFA said the partnership will cover crypto awareness, fan engagement, and product experiences across North America and Europe.

The tournament will feature 48 teams, 104 matches, and 16 host cities across three countries.

Kraken partnership covers fan activations

Kraken will use the partnership to introduce football fans to digital asset products and education. FIFA said the agreement will bring fan-first activations to tournament audiences before and during the World Cup. The company will connect those programs to match viewing, football communities, and tournament events.

The FIFA World Cup 2026 will run for seven weeks across North America. FIFA expects more than six billion cumulative viewers during the expanded tournament. The event will include the first 48-team format in World Cup history.

Kraken has operated for more than a decade and serves users in over 190 countries. The exchange will use the tournament platform to present crypto tools to football audiences. The company has not disclosed financial terms for the FIFA agreement.

FIFA links deal to tournament experience

FIFA Chief Business Officer Romy Gai said the partnership fits the organization’s fan experience plans. FIFA has used commercial partnerships to add technology and consumer programs around major tournaments. The Kraken deal adds a crypto exchange partner to the World Cup 2026 sponsorship structure.

Kraken co-CEO Arjun Sethi described football as a shared global experience. He said the sport brings people together across borders, languages, and cultures. Sethi also said money should work with similar openness through smartphone access.

The partnership will begin public programming around the FIFA World Cup 2026 Countdown Concert on June 10. The concert will take place across several cities as part of tournament preparations. After that event, Kraken plans activations in North America and Europe.

Crypto firms continue sports partnerships

Kraken has already worked with Tottenham Hotspur FC, Atlético de Madrid, and RB Leipzig. The exchange also has a Formula 1 partnership with Atlassian Williams Racing. Those agreements place Kraken across football and motorsport audiences before the World Cup.

The FIFA deal follows other crypto partnerships tied to sports and entertainment. Crypto companies have used teams, leagues, and major events to reach non-trading audiences. In this case, Kraken will focus on education, brand visibility, and product access around football.

FIFA has positioned the 2026 World Cup as its largest tournament by teams and matches. The competition will take place in the United States, Canada, and Mexico. Kraken’s World Cup programming starts with the June 10 countdown concert.

Key Highlights

• IonQ exceeded its Q1 2026 revenue projections by 30%, posting $64.7M and elevating annual forecasts to $260M–$270M
• D-Wave Quantum has ties to a $100M equity arrangement with the U.S. Commerce Department
• Alphabet’s Willow processor tackled a computational challenge in five minutes that conventional systems would require exponentially longer to complete
• These three enterprises offer varying risk profiles, spanning from specialized quantum plays to established technology conglomerates
• Quantum technology promises transformative applications in pharmaceutical research, encryption, supply chain optimization, and financial analysis

Three companies currently dominate investor conversations around quantum computing: IonQ, D-Wave Quantum, and Alphabet. Each brings a distinct technological strategy and presents different investment risk characteristics.

Quantum systems are engineered to tackle computational challenges that traditional computers find insurmountable. Promising applications span pharmaceutical development, cryptographic security, operational logistics, and complex financial calculations.

This industry remains in its infancy. Profitability eludes most participants, and mainstream commercial deployment remains several years distant. Nevertheless, both governmental and private capital continues flowing into the sector.

IonQ: Specialized Quantum Growth Story

IonQ stands as a premier dedicated quantum computing investment opportunity.

IonQ, Inc., IONQ

The enterprise employs trapped-ion methodology. Strategic alliances span cloud service providers, federal agencies, and major corporate clients.

First-quarter 2026 revenues reached $64.7 million for IonQ. This performance exceeded the company’s internal midpoint projection by 30%.

Management subsequently elevated annual revenue expectations to a range between $260 million and $270 million.

While profitability remains elusive and capital expenditures on expansion continue at high levels, IonQ’s accelerating revenue trajectory has bolstered investor confidence in this segment.

D-Wave Quantum: Market-Ready Solutions

D-Wave employs quantum annealing technology, an approach specifically designed for optimization challenges.

D-Wave Quantum Inc., QBTS

Practical applications encompass supply chain logistics, resource scheduling, and financial portfolio optimization. D-Wave distinguishes itself by serving paying commercial clients, differentiating it from competitors still focused primarily on research activities.

The organization has been associated with a $100 million common equity arrangement involving the U.S. Commerce Department, representing part of a wider federal quantum computing initiative.

D-Wave is additionally investigating utilization of IBM’s quantum chip manufacturing facilities, potentially diversifying its production capabilities.

Industry specialists continue debating whether quantum annealing will emerge as the prevailing long-term methodology. This uncertainty positions D-Wave as among the more debated, yet potentially lucrative, opportunities within the quantum computing landscape.

Alphabet: Reduced-Risk Quantum Exposure

Alphabet operates one of the planet’s most sophisticated quantum research operations through Google.

Alphabet Inc., GOOGL

Its Willow quantum processor generated significant interest following Google’s announcement of breakthroughs in quantum error correction. Willow completed a standardized computing benchmark in five minutes — a challenge requiring vastly more time for conventional computing systems.

Alphabet doesn’t represent a pure quantum computing investment. The company also controls Google Search, YouTube, Google Cloud, and Android, alongside substantial artificial intelligence holdings.

This business diversification substantially reduces risk compared to IonQ or D-Wave. Should quantum computing achieve commercial viability, Alphabet stands ready to capitalize. If development timelines extend, the corporation maintains numerous alternative revenue engines.

For risk-averse investors seeking quantum computing exposure, Alphabet represents the most balanced choice among these three options.

The Better Business Bureau’s National Advertising Division has referred Kalshi to regulatory authorities after the prediction market platform declined to participate in a review of its influencer advertising practices.

According to a statement published by the BBB’s National Advertising Division on Monday, the matter will be sent to the appropriate regulatory authorities, including relevant state Attorneys General, for possible enforcement action.

The self-regulatory body said it examined whether material connections between Kalshi and individuals promoting the platform online were clearly disclosed and whether the company had taken sufficient steps to follow Federal Trade Commission endorsement guidelines.

NAD said Kalshi chose not to participate in the voluntary review process. As a result, the organization stated that it will also notify the social media platforms where the advertising appeared.

“At issue for NAD was whether material connections between Kalshi and influencers or affiliates were clearly and conspicuously disclosed in social media advertising.”

Advertising disclosures come under review

Details released by the BBB indicate that the inquiry focused on social media promotions distributed by influencers and affiliates associated with Kalshi.

The review sought to determine whether audiences were adequately informed when content creators had financial relationships with the company.

Separate scrutiny has also emerged from Media Matters for America, a nonprofit media watchdog organization. According to Media Matters, Kalshi’s marketing campaigns on TikTok and Instagram helped popularize prediction trading among younger audiences, with some content presenting participation on the platform as a potential “side hustle.”

The latest referral adds another compliance issue for Kalshi as prediction markets continue drawing attention from regulators and policymakers. The company has already faced questions surrounding the regulatory treatment of event contracts, while some critics have raised concerns about market integrity and allegations of insider trading within the broader prediction market sector.

Crypto expansion continues despite scrutiny

Even as the advertising review moves toward regulators, Kalshi has continued expanding its crypto-related offerings.

A day after the BBB announcement, Kalshi revealed that it had filed with the U.S. Commodity Futures Trading Commission to list perpetual futures tied to Hyperliquid’s HYPE token. The proposed contract joins a growing list of cryptocurrency derivatives products the company is seeking to bring to U.S. traders.

The filing follows Kalshi’s recent launch of Ethereum perpetual futures under its “American Perpetuals” brand. As crypto.news reported on June 4, Ethereum became the second cryptocurrency available through the platform’s perpetual futures lineup after the earlier introduction of Bitcoin perpetual futures.

Several additional contracts linked to cryptocurrencies, including XRP, Solana, Dogecoin, Stellar, Shiba Inu, and Hedera, remain under separate regulatory review.

Strong user growth has continued alongside the company’s product expansion. In comments reported by Bloomberg, a Kalshi spokesperson said the platform is tracking toward a $1.5 billion annualized revenue run rate.

Bloomberg also reported that investor demand recently supported a $1 billion funding round that valued the company at $22 billion.

Those growth figures arrive as prediction markets gain traction among both retail and institutional participants, despite ongoing disagreements between state regulators and the CFTC over the oversight of event-based contracts.