CFTC Ready to Create Own Crypto Rules if CLARITY Act Fails

CFTC Chair Mike Selig warned that if Congress doesn't pass the CLARITY Act, his agency will use its existing authorities to create rules for crypto markets. Selig said he's directed staff to begin exploring rules to codify a CFTC market structure for crypto assets.

Speaking at the Innovation Advisory Committee meeting, Selig emphasized that if the bill stalls, the CFTC won't wait for Congress. He also mentioned that his employees are working with software developers to figure out how they can legally offer their crypto protocols to U.S. users.

The CLARITY Act has been pending in the Senate for months, and Democrats have expressed concerns about the ethics provision. However, Patrick Witt, head of the President's Council of Advisers for Digital Assets, remains optimistic that the bill will pass. He believes that with only two to three weeks left before the September 15 vote, there will be breakthroughs that lead to a successful outcome.

Witt acknowledged that regulators would implement new rules by September, regardless of how the Senate vote goes. If the CLARITY Act passes, those rules would be adjusted to match the new law.