CFTC Chair Readies Crypto Rules If Congress Fails to Pass Clarity Act

In brief

• CFTC Chair Michael S. Selig directed staff to explore crypto market structure rules using the agency's existing authority.
• Selig said he will direct staff to formally propose the rules if the Clarity Act remains stalled in Congress.
• The potential framework could cover crypto exchanges, leveraged trading, and on-chain finance protocols.

Commodity Futures Trading Commission Chair Michael S. Selig has directed agency staff to begin developing crypto market structure rules, preparing the regulator to act if Congress fails to pass the Clarity Act.

Speaking Thursday at the inaugural meeting of the CFTC's Innovation Advisory Committee, Selig said passing bipartisan market structure legislation remains his preferred path. If the bill remains stalled, however, he said the CFTC will use its existing authority to establish a regulatory framework for crypto markets, calling it “the most important step towards future-proofing this industry is passing this bipartisan bill.”

The Clarity Act would establish a federal framework for digital assets and clarify the CFTC and SEC’s roles in overseeing crypto markets. Selig said legislation would make those rules harder for a future administration to reverse.