CFTC Orders Staff to Draft Crypto Rules Amid CLARITY Act Stalemate

CFTC Chair Michael Selig has directed his staff to draft rules for the crypto market in case the CLARITY Act stalls. Selig, speaking at the inaugural meeting of the agency's Innovation Advisory Committee on August 20, warned that if Congress fails to pass the bill, the CFTC will act alone.

The CLARITY Act aims to create a federal framework for digital assets and settle the question of how oversight responsibilities are divided between the CFTC and the Securities and Exchange Commission (SEC). Selig emphasized that legislation would make any resulting rules more durable than regulatory action alone, as they could be reversed by a future administration.

Selig said passing the CLARITY Act is his preferred outcome, but he has already directed staff to begin exploring what CFTC rules for crypto markets might look like. The framework would cover both registered and unregistered exchanges, as well as on-chain protocols, including decentralized finance (DeFi) operations.