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Selig Signals CFTC to Move on Crypto Rules If CLARITY Stalls

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CFTC crypto rules could be implemented without new legislation if Congress fails to pass the CLARITY Act, according to CFTC Chair Michael Selig.

Selig made the remarks during the agency's inaugural Innovation Advisory Committee meeting in Washington on Thursday. He stated that the CFTC would use existing authority to create a separate framework for crypto market structures, which could cover registered firms and unregistered exchanges seeking designation as crypto asset markets under the CFTC's designated contract market structure.

The chairman also directed staff to examine leveraged or margined crypto trading under tailored CFTC rules. Additionally, he asked staff to engage developers of on-chain finance protocols about legal compliance routes.

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