CFTC Advances Crypto Rules After CLARITY Act Setback
The Commodity Futures Trading Commission (CFTC) will continue to advance rules for cryptocurrency after the Senate blocked the CLARITY Act, a proposed legislation that aimed to regulate digital commodity markets. According to CFTC Chairman Michael Selig, existing authority will support new crypto rules.
The CLARITY Act, also known as H.R. 3633, was voted down by the Senate on September 15, with 49 votes against and 50 in favor of cloture. The motion required three-fifths of senators voting under Senate rules to proceed. Selig stated that Americans deserve regulatory clarity, legal certainty, and consumer protections in crypto markets.
The CFTC had prepared for this scenario by establishing a regulatory route through existing statutory authority before the Senate vote. During an August 20 Innovation Advisory Committee meeting, Selig mentioned that staff was exploring market-structure rules under existing authority as a fallback if Congress failed to complete market-structure legislation.