The question is dealt with on pages 302 to 304 of Smolin's book The Life of the Cosmos.
The reasoning is based on a proposal by Hans Bethe and Gerald Brown (I don't have the reference to hand) that in a neutron star kaons can become light (by a mechanism analogous to superconductivity), and indeed can become light enough for an electron to decay into a kaon and a neutrino. Smolin argues that if Bethe and Brown are correct this decreases the mass at which a neutron star will collapse to somewhere around 1.5 solar masses (the book doesn't explain the calculation).
Smolin's idea is based on the tendancy of the universe to maximise black hole formation. Because the Bethe-Brown mechanism would increase the number of black holes formed, Smolin predicts the Bethe-Brown mechanism does occur and therefore than no neutron stars will be found with a mass of greater than two solar masses.
I should caution that Smolin's idea of cosmological natural selection is not widely accepted, and relies upon the unproven idea that a black hole nucleates a new universe with slightly different physical laws. Until such time as evidence emerges to support it I should treat the idea with some caution. Having said this, Smolin's book is a fascinating read. I thoroughly enjoyed reading it and I recommend it to everyone (who isn't too credulous!).
Smolin's paper The status of cosmological natural selection (last updated in 2008) places the mass limit for kaon condensate stars at 1.6 solar masses. That means that if the J1614-2230 mass measurement is accurate it does indeed rule out Smolin's idea. Having said this, we don't know the equation of state for such dense objects and I'm sure there is wiggle room.