CFTC chair signals push to build crypto market rules under existing authority
AI Market Summary
CFTC Chair Selig signaled the agency may move ahead with a crypto market framework using existing authority if the Clarity Act remains stalled, potentially expanding oversight to unregistered exchanges and formalizing market-structure rules, including leverage and margin provisions. The regulatory impetus arrives alongside strong risk-on flows: Bitcoin and Ethereum ETFs posted their largest net inflows in months and large-scale short liquidations indicate rapid positioning shifts.
Impact level
● High
Affected assets
BTC/USDT+6.99%
AI Insight · BTC/USDTAI Insight
▲ Bullish
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CFTC Chairman Michael Selig said the agency is prepared to move ahead with a regulatory framework for crypto assets using its current powers if the Clarity Act remains stalled by Democratic filibusters.
Selig said he has directed staff to quickly advance a formal rulemaking proposal and to evaluate how digital-asset market structure could be incorporated into CFTC rules. The effort could extend oversight to both existing CFTC-registered firms and crypto exchanges that currently operate without registration. Rules designed specifically for digital assets could allow leverage and margin trading.
Market activity has intensified alongside the regulatory discussion. On Thursday, Bitcoin ETFs posted $606 million of net inflows, the largest single-day total since May 1. Ethereum ETFs recorded $219 million of net inflows, the highest since September 2025. More than $1.2 billion in crypto short positions were liquidated over the past 24 hours, bringing the two-day total close to $5 billion. (Decrypt)
