CFTC Eyes Regulatory Framework If CLARITY Act Fails

U.S. Commodity Futures Trading Commission (CFTC) Chair Mike Selig has hinted that his agency may move to establish regulatory rules for crypto asset markets if Congress fails to pass the CLARITY Act.

Selig made this statement during the inaugural Innovation Advisory Committee on Thursday, where he directed CFTC staff to explore creating a specialized DCM (designated contract market) designation for both existing registrants and currently unregistered crypto exchanges.

Under this potential framework, designated platforms could offer leveraged or margined trading under CFTC oversight. If the CLARITY Act stalls due to what Selig described as Democratic obstruction, the CFTC would quickly propose these rules.