CFTC Threatens Autonomous Regulation as CLARITY Act Stalls in Congress

CFTC Chair Michael Selig has stated that if Congress fails to pass the CLARITY Act, the agency will write its own rules for crypto regulation. Selig emphasized that 'crypto regulation is not waiting on Washington' and that CFTC staff have been directed to permit both registered and non-registered entities to provide crypto asset trading on a leveraged or margined basis.

The CLARITY Act, which aims to clarify whether cryptocurrency qualifies as a security or a commodity, has stalled due to disagreements over ethics and conflict-of-interest provisions. The bill needs 60 votes to pass the Senate and return to the House for approval before reaching President Trump's desk. If it fails to pass, Selig will direct CFTC staff to 'move swiftly to propose these new rules for the industry.'

The CFTC's agenda also includes prediction markets, with Selig reiterating the agency's view of exclusive jurisdiction tied to event contracts. Meanwhile, the Securities and Exchange Commission (SEC) has released proposed rules for digital asset regulation, including a safe harbor approach from tokens being treated as 'investment contracts.'