Regulators Forge Ahead with Crypto Rules, Leaving Congress in the Lurch

The SEC and CFTC are moving forward with plans to write crypto rules without waiting for Congress to pass legislation. According to CFTC Chair Michael Selig, the agency has ready-to-go rule proposals that will be finalized before the current administration ends.

SEC Commissioner Hester Peirce also stated that the SEC can continue meaningful crypto rulemaking even if Congress fails to act on the CLARITY Act. The Senate left the bill untouched during its August recess, but Majority Leader John Thune has filed cloture on a motion to proceed, setting up a procedural vote for around September 15.

The CFTC's authority over spot crypto markets is limited, and Selig acknowledged that only legislation would provide additional authority. However, the agency can regulate crypto derivatives aggressively using its existing power.