CFTC Prepares to Regulate Crypto Markets Amid Stalled Legislation
CFTC Chairman Michael Selig has instructed staff to develop rules for crypto markets if Congress fails to pass the Digital Asset Market Clarity (CLARITY) Act. Speaking at the agency's inaugural Innovation Advisory Committee meeting, Selig stated that the CFTC would use its existing authority to establish a regulatory framework for crypto markets.
The agency will seek to create a dedicated 'crypto asset market' designation, modeled partly on existing designated contract markets. This could allow registered exchanges and certain non-registered crypto platforms to offer leveraged or margin trading under CFTC oversight.
Selig directed staff to work with on-chain protocol developers to identify compliant ways for decentralized and blockchain-based financial platforms to operate in the US. He emphasized that congressional approval of the CLARITY Act remains the CFTC's preferred outcome, calling it 'the surest way' to prevent regulatory uncertainty.