Commodity Futures Trading Commission Chair Michael S. Selig has directed agency staff to begin developing crypto market structure rules, preparing the regulator to act independently if Congress fails to pass the Clarity Act.
Speaking Thursday at the inaugural meeting of the CFTC's Innovation Advisory Committee, Selig stated that passing bipartisan market structure legislation remains his preferred path. However, if the bill remains stalled, the CFTC will use its existing authority to establish a regulatory framework for crypto markets. He called the passage of the bipartisan bill the most important step toward future-proofing the industry.
The Clarity Act aims to establish a federal framework for digital assets and clarify the respective roles of the CFTC and the SEC in overseeing crypto markets. Selig noted that legislation would make those rules more resilient against reversal by a future administration. On Wednesday, President Donald Trump also urged Congress to pass a fair version of the legislation.
If Congress fails to act, Selig said the CFTC is prepared to move forward on its own, citing potential obstruction. He has already instructed staff to begin exploring rules to codify a crypto market structure using the agency's existing powers.
Under the potential framework outlined by Selig, current CFTC registrants and unregistered crypto exchanges could come under CFTC oversight, allowing them to offer leveraged or margined crypto trading under rules tailored to digital assets. Additionally, Selig directed staff to collaborate with developers of on-chain finance protocols to help them operate legally and compliantly in the United States.
Selig indicated that the agency will give Congress additional time to pass the Clarity Act before moving forward with its own proposed rules.
