CFTC Chair Selig Orders Backup Crypto Rules as Clarity Act Stalls

Selig is also targeting onchain software like Hyperliquid. He directed staff to work with developers of decentralized finance protocols on ways they could legally offer their technology in the United States. The area has produced years of uncertainty over when software developers face regulatory liability.

The House passed its version of the Clarity Act in 2025. Senate committees advanced related legislation in 2026. Negotiations have since bogged down over government ethics restrictions, stablecoin yields, decentralized finance protections and other policy disputes. Senate Majority Leader John Thune indicated earlier in August that a vote would not happen before the recess, pushing potential consideration into mid-September. Supporters need 60 votes to overcome a filibuster.

Selig and SEC Chairman Paul Atkins have argued that legislation gives cryptocurrency companies more certainty than agency-written rules. A federal statute is harder for a future administration to reverse. The CFTC's preparations also build on earlier coordination with the SEC, including Project Crypto, an effort aimed at clarifying which digital assets fall under each regulator and reducing overlapping requirements.

Cryptocurrency companies have argued that unclear federal rules make it harder to build products in the United States while overseas jurisdictions establish more defined frameworks. If Congress fails to pass the Clarity Act, CFTC rulemaking could provide an interim path for exchanges and developers. It would carry less permanence and could face court challenges or reversal under a future administration.

September now becomes the critical window. The CFTC is preparing to implement the Clarity Act if Congress delivers it. Selig's directive ensures the agency is also preparing to move without lawmakers if the legislation stalls again.