CFTC Prepares for Clarity Act Failure with New Crypto Regulations

CFTC Chair Mike Selig has directed his staff to build crypto rules if Congress fails to pass the Digital Asset Market Clarity Act. The bill, which has stalled due to Democrat obstruction, would provide clarity on how the CFTC should regulate digital assets.

The agency's sister regulator, the Securities and Exchange Commission (SEC), proposed its own major crypto rule this week, known as Regulation Crypto Assets, to allow startups to raise funds with fewer regulatory hurdles. The CFTC had previously issued a joint policy stance defining the different kinds of digital assets with the SEC.

Selig warned that passing the bill was the surest way to prevent 'another Gary Gensler from running a rogue campaign of lawfare' against the industry, referencing Ripple Labs CEO Brad Garlinghouse's experience with the SEC. The CFTC chair has also steered staff toward work with developers to build rules to offer their protocols in a legal and compliant manner in the United States.