CFTC Readies Own Crypto Market Rules as Congress Stalls CLARITY Act

As Congress fails to pass the CLARITY Act, the Commodity Futures Trading Commission (CFTC) is prepared to establish a regulatory framework for cryptocurrency markets, CFTC Chairman Michael S. Selig announced on Aug. 20 during a conference in Washington, D.C. Selig emphasized the importance of a crypto asset market structure, stating that it would fulfill President Trump's promise, should Congress not act.

He directed the CFTC staff to devise rules for a CFTC market structure for crypto assets using existing authorities and to collaborate with developers of on-chain finance protocols to ensure compliance. Selig expressed hope that Congress would pass the CLARITY Act, declaring it crucial for future-proofing the industry. He urged industry stakeholders to continue engaging with lawmakers and support the CLARITY Act.

However, Selig warned that, if the bill fails to pass, the CFTC will swiftly propose new regulations for the crypto industry. The CLARITY Act's prospects dimmed after the Senate adjourned for a five-week August recess without voting on the digital asset legislation. A cloture vote is scheduled for Sept. 15, which will determine the bill's fate.

On Aug. 16, Trump administration officials convened with cryptocurrency and prediction market executives to discuss policy discussions, including the Innovation Advisory Committee Conference and additional meetings. SEC Chairman Paul S. Atkins also stated that the SEC would step in to support the digital asset market if Congress does not pass the CLARITY Act.