CFTC Prepares Own Crypto Rules Amid CLARITY Act Uncertainty

CFTC Chairman Michael S. Selig announced that his staff has begun exploring rules to create a federal crypto market structure under existing law, in case Congress fails to pass the CLARITY Act.

The CFTC is looking at regulations that would bring both registered and unregistered cryptocurrency exchanges under its framework, which would allow for margined and leveraged trades with purpose-fit rules.

Selig noted that the CFTC already has authority to designate a new type of designated contract market (DCM) centered on crypto, and is working with SEC Chairman Paul Atkins through Project Crypto on an asset classification system.