CFTC Prepares to Regulate Crypto Markets If Clarity Act Stalls

CFTC Chair Michael S. Selig is preparing to establish crypto market structure rules if Congress fails to pass the Clarity Act. Speaking at the inaugural meeting of the CFTC's Innovation Advisory Committee, Selig said he will direct staff to formally propose the rules if the bill remains stalled.

The potential framework could cover crypto exchanges, leveraged trading, and on-chain finance protocols. Selig emphasized that passing bipartisan market structure legislation remains his preferred path but acknowledged that it may not happen.

If Congress fails to act, Selig said the CFTC will use its existing authority to establish a regulatory framework for crypto markets. He directed staff to begin exploring rules to codify a CFTC market structure for crypto assets using the agency's existing authorities.