CFTC Threatens to Regulate Crypto Markets if CLARITY Act Fails

CFTC Chairman Michael Selig has announced that his agency will establish crypto market rules if Congress fails to pass the CLARITY Act. The act is designed to differentiate the regulatory responsibilities of the CFTC and the Securities and Exchange Commission (SEC) over digital assets.

Selig stated that congressional approval of CLARITY remains the preferred outcome, but the agency will move independently if the legislation remains stalled. He directed CFTC staff to begin developing rules for crypto asset markets while lawmakers continue to debate the legislation.

The proposed CFTC rules could allow registered and certain non-registered platforms to offer leveraged crypto trading under oversight. Selig added that the agency would seek to establish a dedicated 'crypto asset market' designation, modeled partly on existing designated contract markets.