CFTC will establish crypto rules if Congress stalls CLARITY Act

Commodity Futures Trading Commission (CFTC) Chairman Michael Selig said the agency is prepared to use its existing authority to establish a regulatory framework for crypto markets if Congress fails to pass the Digital Asset Market Clarity (CLARITY) Act.

Speaking at the agency's inaugural Innovation Advisory Committee meeting on Thursday, Selig shared that he directed CFTC staff to begin developing rules for crypto asset markets while lawmakers continue to debate the legislation.

The CFTC Chair stated that the agency would give Congress time to advance the CLARITY Act but could move independently if the legislation remains stalled.

“We’re going to give CLARITY its breathing room for a vote, but if the Democrats cannot support a bipartisan work product, which reflects compromises from both sides of the aisle, and ultimately send a fair version of the bill to the President’s desk, then rest assured, I will direct CFTC staff to move swiftly to propose these new rules for the industry,” Selig said.

He added that the agency would seek to establish a dedicated “crypto asset market” designation, modeled partly on existing designated contract markets. The framework could allow registered exchanges and certain non-registered crypto platforms to offer leveraged or margin trading under CFTC oversight.

Selig also directed CFTC staff to work with on-chain protocol developers to identify compliant ways for decentralized and blockchain-based financial platforms to operate in the US.

"We will heed President Trump’s call to 'codify a future-proof digital asset market structure that cannot be undone by the crypto haters,'" he added.

CLARITY Act remains preferred path to regulatory progress

Despite the contingency plan, Selig said congressional approval of the CLARITY Act remains the CFTC’s preferred outcome.

“I’d urge you all to continue engaging with Capitol Hill to ensure that this bill gets across the finish line. We stand ready to begin immediately implementing the bill if passed,” Selig said in the meeting.

The CLARITY Act is designed to differentiate the respective regulatory responsibilities of the CFTC and the Securities and Exchange Commission (SEC) over digital assets.

Selig described passage of the bill as “the surest way that we can prevent another Gary Gensler from running a rogue campaign of lawfare against the individuals and companies in this room.”

The legislation remains pending in the Senate and will require 60 votes when lawmakers return in September. Its progress has become a central focus for the Trump administration, which has pushed for a clearer regulatory framework for digital assets.

Selig’s comments came one day after President Donald Trump hosted crypto and technology executives at the White House and urged lawmakers to advance the CLARITY Act. The meeting included executives from Coinbase, Ripple, Gemini and other major financial and crypto companies.

The CFTC Chairman was also present, along with Securities and Exchange Commission (SEC) Chair Paul Atkins. Both agencies have continued to push for stronger regulatory oversight of crypto and the broader digital asset market.