The U.S. Commodity Futures Trading Commission is preparing to advance crypto market structure rules if Congress fails to pass the CLARITY Act, Chairman Michael Selig said Thursday.
Selig said the agency has already directed staff to explore a regulatory framework using its existing authority. His comments signal that the CFTC does not plan to leave the U.S. crypto market without a regulatory path if lawmakers cannot reach an agreement.
CFTC Builds Alternative Regulatory Path
Speaking at the agency’s first Innovation Advisory Committee meeting, Selig said congressional legislation remains his preferred option. However, he said the CFTC could move forward with rulemaking if the bill continues to stall.
The proposed framework could expand oversight of crypto trading platforms and create clearer rules for leveraged and margined digital asset trading. The agency is also examining ways for developers of on-chain finance protocols to operate legally in the United States.
The move would give the CFTC a way to address market structure without waiting indefinitely for Congress. However, the agency would still need to operate within its existing statutory authority.
CLARITY Act Remains Key to Long-Term Framework
The CLARITY Act is designed to establish a broader federal framework for digital assets and clarify the responsibilities of the CFTC and Securities and Exchange Commission. The legislation has advanced through Congress but remains stalled in the Senate.
President Donald Trump has urged lawmakers to approve the legislation, adding pressure for a bipartisan agreement. Senate leaders have scheduled a procedural vote for September, giving lawmakers another opportunity to move the bill forward.
Selig has previously warned that regulators could end up writing much of the industry’s rulebook if Congress fails to act. He now appears prepared to turn that warning into a regulatory strategy.
For crypto businesses, the prospect of CFTC rulemaking could provide greater clarity for trading and decentralized finance. However, industry participants may still prefer legislation because congressional rules could provide a more durable framework than agency regulations.
