CFTC Unveils Backup Plan for Crypto Rules Amid CLARITY Act Uncertainty

U.S. regulators are taking steps to establish rules for the cryptocurrency market amid uncertainty over the CLARITY Act's passage.

CFTC Chairman Mike Selig warned that if the act stalls due to Democratic obstruction, the agency will use its existing authorities to create a regime for crypto asset markets.

Selig instructed CFTC staff to explore rules for codifying market structure for cryptocurrencies and has indicated that the move would allow current registrants and on-chain protocols to obtain Designated Contract Market licenses.

This license would enable these platforms to offer leveraged and margin trading in the U.S., a key aspect of the CLARITY Act's provisions.