Regulators Take Initiative as US Crypto Framework Stalls

Crypto regulation in the US is on the move, despite Congress's indecision. CFTC Chair Michael Selig has signaled that his agency will draft a crypto trading framework if the Clarity Act doesn't pass by September. This comes as lawmakers left for their summer break without acting on the bill.

The SEC has already proposed its own rules, Regulation Crypto Assets, which would exempt offerings up to $5 million and $75 million from standard securities registration. This move shows that regulators are ready to act even if Congress doesn't.

Traders are responding to these developments with real money, pouring into crypto ETFs in the biggest single-day haul since May. Bitcoin ETFs brought in $606 million, while Ethereum ETFs pulled in $219 million. The price action has been brutal for those betting against the market, with nearly $5 billion in shorts wiped out.