CFTC Threatens to Write Own Crypto Rules as Clarity Act Hits Roadblock

CFTC Chair Michael S. Selig has announced that his agency will write its own rules for the crypto industry if Congress fails to pass the Clarity Act, a bipartisan bill that would create a federal framework for digital assets.

The Clarity Act aims to clarify which agency - the CFTC or the Securities and Exchange Commission - oversees what in terms of digital asset markets. However, Selig has stated that waiting around is no longer an option, as the bill has been stuck in Congress.

At the inaugural meeting of the CFTC's Innovation Advisory Committee, Selig warned that if the Clarity Act continues to stall due to 'Democrat obstruction', the agency will utilize its existing authorities to begin establishing a regime for crypto asset markets.

The potential rules are broad and could cover both current CFTC registrants and unregistered crypto exchanges. They could also offer leveraged or margined crypto trading under rules tailored specifically to digital asset markets.