CFTC Prepares Crypto Rules as Congress Stalls on Clarity Act
CFTC Chair Michael S. Selig has directed agency staff to develop crypto market structure rules, preparing the regulator to act if Congress fails to pass the Clarity Act.
The CFTC is prepared to use its existing authority to establish a regulatory framework for crypto markets, which could cover exchanges, leveraged trading, and on-chain finance protocols. Selig emphasized that passing bipartisan market structure legislation remains his preferred path, but he noted that the agency will take action if necessary.
In particular, the rules would apply to current CFTC registrants and unregistered crypto exchanges, which could offer leveraged or margined crypto trading under tailored digital asset market rules. Selig also directed staff to work with developers of on-chain finance protocols to establish ways for them to operate legally in the US.