U.S. regulators are preparing to fast-track cryptocurrency rules amid ongoing uncertainty surrounding the CLARITY Act. During an August 20 meeting with industry players, CFTC Chairman Mike Selig warned that the agency would utilize its existing authorities to establish a regulatory regime for crypto asset markets if the legislation continues to stall due to Democratic obstruction.
Selig stated that he has instructed CFTC staff to begin exploring rules to codify the agency's market structure for crypto assets without supporting legislation. According to Selig, this approach would enable the CFTC to grant current registrants and onchain protocols a Designated Contract Market license, effectively allowing these platforms to offer leveraged and margin trading in the U.S. President Donald Trump recently confirmed that Hyperliquid was pursuing this pathway.
This planned action mirrors recent moves by the Securities and Exchange Commission, which released a guideline for crypto fundraising up to $75 million—a provision originally included in the CLARITY Act. Under the CFTC's plans, the agency aims to oversee crypto futures, pre-IPO perps, leveraged trading by onchain protocols, GPU futures, and prediction markets.
However, these regulatory efforts face potential hurdles. CME is already challenging the CFTC's approval of crypto perpetual futures for Coinbase and Kalshi in court, while the agency's authority over prediction markets is being contested by sports betting firms and state attorneys general. Agency-led guidelines implemented without congressional legislation remain vulnerable to legal challenges and reversals.
White House chief crypto advisor Patrick Witt expressed support for the regulators' plans, calling them pro-innovation and growth. Meanwhile, Coinbase CEO Brian Armstrong noted that regulatory clarity is approaching, though he pointed out that agency-led rules serve as a temporary fix carrying distinct regulatory risks. Coinbase CEO Brian Armstrong also expects these rules to be released as soon as next month.
