CFTC Prepares to Step In with Regulatory Framework if CLARITY Act Stalls

The Commodity Futures Trading Commission (CFTC) may move forward with its own regulatory framework for cryptocurrency markets if Congress stalls on passing the CLARITY Act, according to CFTC Chair Michael Selig.

Selig stated that if the bill continues to be delayed due to Democratic obstruction, the agency will utilize its existing authorities to establish a regime for crypto asset markets. He emphasized that the CFTC owes it to the American people to take action in this regard.

The CLARITY Act has faced delays, with two previous attempts at voting on the bill being pushed back. The next scheduled vote is set for September 15. However, legal experts predict that it's more likely the industry will see proposed CFTC rules before the legislation becomes law.

CFTC staff has already begun exploring potential rules, and given Selig's pace and industry input collected so far, a proposal could be prepared relatively quickly. However, Selig pledged to give CLARITY 'breathing room for a vote,' suggesting that publication may occur after September 15 if the bill stalls.