Selig Vows Swift Action on Crypto Rules if Congress Fails

CFTC Chair Michael Selig has vowed to establish rules for the cryptocurrency market if Congress fails to pass legislation on the matter this year. He stated that the agency stands ready to begin implementing the Clarity Act, a bill aimed at creating a regulatory framework for the industry by splitting oversight between the CFTC and the Securities and Exchange Commission (SEC). If the Clarity Act stalls due to Democrat obstruction, Selig plans to utilize the CFTC's existing authorities to establish a regime for crypto asset markets.

Selig emphasized that he will heed President Trump's call to codify a future-proof digital asset market structure. He noted that his staff is exploring rules to designate crypto exchanges as crypto asset markets and permit them to offer trading, as well as establishing ways for developers to offer their protocols in a legal and compliant manner.

The Clarity Act has been stuck in negotiations between Senate Republicans and crypto-friendly Democrats for nearly a year. The main sticking point remains the push by Democrats for stronger ethics restrictions. Despite efforts to pass the legislation before the August recess, Senate GOP leaders have pushed it back until mid-September, dimming its prospects of passing this year.