CFTC will establish crypto rules if Congress stalls CLARITY Act

The Commodity Futures Trading Commission will move to establish rules for crypto markets if Congress does not advance the CLARITY Act, according to a report by FXStreet. The prospect highlights continued uncertainty over how US digital-asset markets will be regulated and which agencies will hold primary authority over different activities.

The CFTC is the US agency responsible for overseeing commodity derivatives markets, including futures and swaps. Crypto assets have long raised jurisdictional questions because some tokens may be treated differently depending on their features, use and the manner in which they are offered or traded.

The CLARITY Act is associated with efforts to create a clearer federal market-structure framework for digital assets. Such legislation could define responsibilities for regulators and establish standards affecting trading venues, intermediaries, token issuers and market participants.

If legislation stalls, agency-led rulemaking could become a more important route for setting standards. Rules developed by the CFTC would still be subject to the federal regulatory process, while broader congressional action could remain necessary to settle questions that extend beyond the agency’s existing authority.