CFTC Prepares Crypto Rules If Congress Fails CLARITY Act

Commodity Futures Trading Commission Chair Michael Selig announced on Thursday that the agency will independently pursue rules to structure U.S. crypto markets if Congress fails to pass the Digital Asset Market Clarity (CLARITY) Act. Speaking at the inaugural meeting of the CFTC’s Innovation Advisory Committee in Washington, Selig stated that staff have already been directed to develop a regulatory framework using the commission’s existing authority.

The announcement comes as the CLARITY Act, the primary legislative proposal for dividing oversight of digital assets between the CFTC and the Securities and Exchange Commission, is effectively stalled until the U.S. Senate reconvenes in September. A procedural cloture vote is expected around September 15, and the bill requires 60 votes to advance, a threshold that may be difficult to reach amid ongoing negotiations over ethics provisions and decentralized finance protections.

Selig emphasized that the CFTC will not wait idly for lawmakers. “We’re going to give CLARITY its breathing room for a vote,” he said, but added that if the bill does not pass, “rest assured, I will direct CFTC staff to move swiftly to propose these new rules...