CFTC Chair Threatens Rulemaking if Congress Fails to Pass Crypto Bill

CFTC Chair Michael Selig has given Congress 'breathing room' to pass the crypto market structure bill, known as CLARITY. However, if the Democrats cannot agree on a bipartisan version of the bill, Selig will direct CFTC staff to explore potential rulemaking for the industry.

The proposed rules would create a framework for crypto exchanges to offer leveraged or margin-based trading and establish a legal path for developers to offer decentralized finance protocols in the United States. Selig emphasized that the agency has begun exploring these rules under its existing authority, which could be implemented if CLARITY stalls.

The CFTC's focus on establishing clear regulations for crypto assets comes as the SEC also moves forward with its own agenda. The SEC has proposed a rule to streamline how crypto companies raise money, dubbed 'Regulation Crypto Assets,' and includes exemptions that would allow certain crypto companies to raise capital without going through traditional securities registration.