Commodity Futures Trading Commission Chairman Michael S. Selig announced Thursday, Aug. 20, that the CFTC will use its existing authorities to establish a crypto asset market regime if Congress fails to pass the CLARITY Act.
Selig made the remarks at the Innovation Advisory Committee Conference in Washington, D.C. directing CFTC staff to begin exploring rules that codify a market structure for crypto assets. The initiative leverages the agency's existing legal authorities to prepare for potential legislative failure.
Selig cited a commitment to the American public and President Trump's promise to deliver a crypto market structure as the motivation for the CFTC's proactive stance. He said the CFTC would support the president's agenda if Congress does not act.
Despite preparations, Selig expressed hope that Congress will pass the CLARITY Act. He called the bill "the most important step towards future-proofing this industry."
Selig issued a direct warning: the CFTC would allow "CLARITY its breathing room for a vote." But if Democrats cannot support the bipartisan bill, he said he will direct staff to "move swiftly to propose these new rules for the industry."
The CLARITY Act's prospects dimmed after the Senate left for its five-week August recess without voting on the digital asset legislation. A critical cloture vote is scheduled for Sept. 15, which will indicate whether the bipartisan legislation can advance.
SECuritiesand Exchange Commission Chairman Paul S. Atkins has also signaled his agency's readiness to act. Atkins told CNBC on July 27 that the SEC stands prepared to support the digital asset market if Congress fails to pass the CLARITY Act.
Selig's directive explicitly includes engaging with developers of on-chain finance protocols to establish methods for legal and compliant offerings. A potential CFTC framework could encompass crypto exchanges, leveraged trading products and decentralized finance protocols.
The Sept. 15 cloture vote serves as the immediate benchmark for legislative progress, with agency-led rule-making positioned as the alternative if Congress does not deliver.
