CFTC Sends Proposal To Regulate Crypto Transactions Following Clarity Act Fail

The Commodity Futures Trading Commission on Thursday sent a proposal to the White House to regulate crypto transactions and markets. 

It isn’t clear what the regulations will look like from the post on the Office of Management and Budget’s website. The proposal is titled “Regulation Crypto Asset Transactions and Regulation Crypto Asset Markets.”

The CFTC’s move comes after lawmakers blocked the long-awaited crypto legislation Clarity Act on Tuesday. Despite the law not advancing, both the CFTC and Securities and Exchange Commission have said they would go ahead with crypto rulemaking anyway. 

CFTC Chair Mike Selig said on Wednesday that while the Clarity Act didn’t move forward, the watchdog would still help U.S. President Trump “get the job done” in regulating the crypto space. 

“The outcome of yesterday’s Senate vote was unfortunate,” Selig wrote on X, adding that the CFTC was “locked in and ready to ship its rules for the new frontier of finance.”

Before the procedural vote on the legislation this week, Selig had said would proceed with rulemaking whether or not the Clarity Act is enacted — with the aim of finalizing rules before the administration’s term is out.

Senators last year approved Selig as the regulator’s chair. Formerly chief counsel at the SEC’s Crypto Task Force, Selig was described by White House’s Crypto and AI Tsar, David Sacks, as “instrumental in driving forward the President’s crypto agenda”