CFTC Takes Matters into Own Hands as Crypto Markets Surge
Crypto markets are witnessing significant gains, with BTC leading at $77.4k after rising by another 5-10%. The BTC ETFs saw a massive influx of $606M in inflows on Thursday, while ETH's ETFs recorded $219M in new local highs.
However, it is not just the markets that are seeing a surge. CFTC Chair Michael Selig has announced that if Congress fails to pass the Clarity Act, his agency will take matters into its own hands and establish a framework for crypto asset markets.
Selig emphasized that if the bill stays stuck due to Democrat obstruction, he will direct CFTC staff to move swiftly in creating rules codifying a market structure for digital assets. This could potentially bring existing registrants and unregistered exchanges under agency oversight, allowing for leveraged and margined crypto trading with tailored rules.
Furthermore, Selig directed his staff to engage directly with onchain finance protocol developers on how they can operate legally in the U.S. He also expressed concerns about legislation being more reliable than agency-written rules, citing the risk of another 'Gary Gensler' running lawfare against crypto again.