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CFTC Chair Promises Crypto Rules if Congress Stalls on CLARITY Act
CFTC Chair Michael Selig plans crypto asset rules if the CLARITY Act stalls in the Senate, directing staff on margin trading and developer protections.
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CFTC Chair Michael Selig told the agency's new Innovation Advisory Committee on Thursday that he will not wait indefinitely for Congress to pass the CLARITY Act, a crypto market structure bill currently stalled in the Senate.
In prepared remarks, Selig said he had directed CFTC staff to write rules allowing registered and non-registered entities to offer leveraged or margined crypto trading, and to explore legal protections for developers. If the CLARITY Act fails to reach President Trump's desk, he plans to push those rules forward by administrative action.
"We're going to give CLARITY its breathing room for a vote, but if the Democrats cannot support a bipartisan work product, which reflects compromises from both sides of the aisle, and ultimately send a fair version of the bill to the President's desk, then rest assured, I will direct CFTC staff to move swiftly to propose these new rules for the industry," Selig said.
The CLARITY Act is paused until the Senate returns from recess in September. Majority Leader John Thune is expected to hold a cloture vote on the legislation at that point, but it would need 60 votes to pass the chamber and return to the House, where it would then require a final vote before going to Trump.