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CFTC Chairman Selig Directs Staff to Draft Crypto Rules by Year-End
CFTC Chairman Selig directs staff to draft crypto market rules under existing authorities if Congress fails to pass the CLARITY Act. A Sept. 15 cloture vote will test the bill's path forward.
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The Commodity Futures Trading Commission will begin writing its own crypto asset market rules if Congress fails to pass the CLARITY Act, Chairman Michael S. Selig said Thursday. Speaking at the Innovation Advisory Committee Conference in Washington, Selig said he has directed CFTC staff to explore rulemaking under existing authorities. The goal is to create a formal market structure for digital assets and to establish a legal framework for on-chain finance protocol developers, he said.
"We owe it to the American people to do so," Selig said. "President Trump promised to deliver a crypto asset market structure, and we will help him deliver if Congress will not."
Selig still wants Congress to pass the CLARITY Act, which he called "the most important step towards future-proofing this industry." He encouraged industry participants to keep lobbying lawmakers and said the CFTC is ready to implement the bill immediately if it passes.
"We're going to give CLARITY its breathing room for a vote," Selig said. "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."
The CLARITY Act's chances have faded after the Senate left for its five-week August recess without a vote. A cloture vote scheduled for Sept. 15 will test whether the bill has enough support to advance. Six weeks remain before the end of the fiscal year, a tight window for any major legislation.