CFTC Explores Market Structure Rules for Crypto Assets Amid CLARITY Act Delays
CFTC Chairman Michael Selig has directed his staff to explore rules for codifying a crypto asset market structure using the Commission's existing authorities.
This move comes as bipartisan legislation, known as the CLARITY Act, stalls in Congress. The proposed law would establish a statutory framework for digital assets, but it may not be passed anytime soon, prompting Chairman Selig to take matters into his own hands.
The potential rules would allow current registrants and non-registrant crypto exchanges to be designated as a type of designated contract market (DCM) known as a 'crypto asset market'. This designation would enable these exchanges to offer crypto asset trading on a leveraged or margined basis, subject to CFTC oversight.
The chairman has also directed his staff to engage with developers of onchain finance protocols to establish ways they can offer their protocols in a compliant manner.