CFTC Prepares to Draft Own Crypto Rules Amid Stalled Clarity Act
The U.S. Commodity Futures Trading Commission (CFTC) has announced that it will move to create its own rules for the cryptocurrency market if the Clarity Act stalls in Congress.
CFTC Chair Michael S. Selig instructed agency staff to review cryptocurrency market structure rules under existing authority, with a focus on creating a regulatory framework that can withstand changes in administration.
The Clarity Act aims to create a federal-level basic framework for digital assets and specify the roles of the CFTC and Securities and Exchange Commission (SEC) in overseeing crypto markets. Selig emphasized that passing this bill is crucial, as rules created through legislation are harder to overturn than those established by individual regulators.
The scope of potential regulations is broad, with Selig indicating that not only registered businesses but also unregistered exchanges could be brought under the CFTC's oversight framework. On-chain finance protocols are also being reviewed, and staff have been instructed to consult with developers to find a path for providing services in the U.S. lawfully.