Commodity Futures Trading Commission Chair Michael Selig announced that if the Clarity Act continues to stall in Congress, his agency will independently build a regulatory framework for crypto asset markets. Speaking at the inaugural meeting of the agency's Innovation Advisory Committee, Selig stated that staff have already been directed to explore rules codifying a CFTC market structure for digital assets.
The Clarity Act has remained stuck in the Senate since lawmakers left for August recess, falling short of the approximately six Democratic votes needed to clear the 60-vote threshold. While Selig noted that legislation remains his preferred path because agency-written rules can be undone by subsequent administrations, he warned that the CFTC will utilize its existing authorities if lawmakers do not move forward.
Under a potential CFTC-led framework, both existing registrants and currently unregistered crypto exchanges could fall under agency oversight, with leveraged and margined trading likely permitted under digital asset-tailored rules. Selig also directed staff to directly engage with onchain finance protocol developers regarding legal operations in the United States.
The regulatory development coincides with broad market activity, including major cryptocurrencies posting gains, significant liquidations of crypto short positions, and substantial net inflows into spot Bitcoin and Ethereum exchange-traded funds.
