CFTC Prepares Cryptocurrency Regulations in Case Congress Fails to Pass Clarity Act

The Commodity Futures Trading Commission (CFTC), led by President Michael S. Selig, is preparing to establish regulations for cryptocurrencies in case the Clarity Act does not pass Congress.

Selig stated that his preferred option remains the approval of a bipartisan legislation on market structure, but if the project gets stuck, he will instruct his team to develop rules for a market structure for cryptocurrencies using existing authorities.

The CFTC's goal is to establish a regulatory framework for cryptocurrency markets, with registered entities and unregistered crypto exchanges being supervised by the agency. Selig emphasized that this step would make it more difficult for future administrations to reverse these regulations.