Selig Warns of CFTC Action if Clarity Bill Stalls in Senate
CFTC Chair Michael Selig has signaled that his agency will pursue regulatory action on crypto markets if Congress fails to pass the Digital Asset Market Clarity Act (CLARITY). Selig made the comments during a recent meeting of the Innovation Advisory Committee in Washington.
The CLARITY Act, which aims to clarify oversight responsibilities between the CFTC and Securities and Exchange Commission (SEC), has stalled in Congress. However, Selig stated that his agency can use existing authority to advance rules for crypto markets without new legislation.
He directed staff to explore a framework for crypto market structures, including registered firms and unregistered exchanges, which could seek designation as crypto asset markets under the CFTC's designated contract market structure. The chairman also asked staff to examine leveraged or margined crypto trading under tailored rules and engage developers of on-chain finance protocols about legal compliance routes.