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CFTC Prepares Backup Plan for Crypto Regulation Amid Clarity Act Uncertainty

Guavy AI Editorial Team
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CFTC Chairman Mike Selig unveiled a backup plan for regulating cryptocurrencies in case the Clarity Act, which aims to provide clarity on digital assets, stalls in Congress.

The CFTC will use its existing authorities to establish a regulatory framework for crypto asset markets if the bill doesn't advance through Congress. The agency's staff has been instructed to develop rules governing leveraged and margined crypto asset trading.

The Clarity Act requires 60 Senate votes to proceed, but it faces Democratic opposition due to ethics provisions. President Trump and cryptocurrency industry executives met at the White House on Wednesday to discuss the bill's passage.

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