CFTC Chair: Agency Will Move Ahead on Crypto Rules if the Clarity Act Stalls

Commodity Futures Trading Commission (CFTC) Chairman Mike Selig said Thursday that the agency is preparing contingency plans to regulate crypto asset markets if Congress fails to pass the Digital Asset Market Clarity Act. Speaking at the inaugural meeting of the Innovation Advisory Committee, Selig said the CFTC "will not sit idle" while lawmakers debate the bill. Selig argued that if the legislation continues to stall, the CFTC would rely on its existing statutory powers to begin building a regulatory regime for crypto markets. He said he has instructed staff to explore rules that would codify a CFTC-style market structure framework for crypto assets, describing the effort as aligned with President Donald Trump's call for a "futureproof" digital asset market structure. The Securities and Exchange Commission (SEC) also moved this week, unveiling its own major proposal, Regulation Crypto Assets, aimed at allowing startups to raise capital with fewer regulatory hurdles. The CFTC and SEC have previously issued a joint policy position outlining distinctions among types of digital assets. The Clarity Act's prospects now hinge on the U.S. Senate, where it will require 60 votes during a final three-week window. A key unresolved issue is whether the White House will accept a revised ethics provision put forward by Senators Ruben Gallego and Thom Tillis. Selig said passing the bill would be the most reliable way to prevent "another Gary Gensler" from pursuing what he characterized as a "rogue campaign of lawfare" against the industry. Ripple Labs CEO Brad Garlinghouse echoed the point at the meeting, saying Ripple "had the unfortunate reality of being at the center of the bullseye" of SEC enforcement in the prior administration and adding, "What a difference leadership makes." Selig also said the CFTC is directing staff to work with developers on rules that would let them offer protocols "in a legal and compliant manner in the United States." He added that additional proposals for prediction markets, including consumer protection requirements, are expected soon. The CFTC has already begun advancing its approach to that sector, including proposed rules to govern prediction markets.