CFTC Threatens Own Rules as CLARITY Act Hits Roadblock
CFTC Chairman Michael Selig has threatened to draft his own rules for crypto asset markets if the CLARITY Act continues to stall in the Senate. He blamed Democratic obstruction for the delay, but Sen. Ruben Gallego disputes this claim, saying the White House's silence on ethics provisions tied to President Trump's crypto holdings is the real holdup.
Selig has directed CFTC staff to draft rules that would allow exchanges to offer leveraged and margined crypto trading under the agency's oversight, subject to purpose-fit rules. The plan also includes designating non-registrant crypto exchanges as a type of designated contract market (DCM) and providing permanent legal protections for software developers who build blockchain protocols.
The CFTC's move is seen as an escalation of the jurisdictional fight between regulators and states over prediction markets, with New York Attorney General Letitia James suing Kalshi for $36 billion in damages. Selig called James 'rogue' during a meeting, while SEC Chair Paul Atkins has also threatened to issue his own crypto rules under Project Crypto if Congress doesn't act.