CFTC Sends Crypto Rule Proposal to White House as Clarity Act Stalls

The Commodity Futures Trading Commission (CFTC) on Thursday submitted a proposed rulemaking package to the White House aimed at regulating crypto asset transactions and markets. A posting on the Office of Management and Budget's website provided few details on the substance of the rules. The submission is titled "Regulation Crypto Asset Transactions and Regulation Crypto Asset Markets." The move comes days after the Senate failed to advance the long-awaited Clarity Act in a procedural vote on Tuesday. The CFTC and the Securities and Exchange Commission (SEC) have said they will continue developing crypto rules even if the legislation does not pass. CFTC Chair Mike Selig said Wednesday that the agency would still support U.S. President Donald Trump's effort to regulate the crypto sector. He called the Senate outcome unfortunate and said the CFTC was prepared to issue rules for what he described as a new part of the financial system. Selig has also said the agency intends to press ahead with rulemaking regardless of whether the Clarity Act becomes law, with a goal of finalizing rules before the administration's term ends. Senators confirmed Selig as CFTC chair last year. He previously served as chief counsel to the SEC's Crypto Task Force. White House Crypto and AI Tsar David Sacks has described Selig as instrumental in advancing Trump's crypto agenda. Trump ran on backing the crypto industry after regulators under the prior administration filed lawsuits against digital-asset firms, largely alleging sales of unregistered securities. Since Trump took office, the SEC and CFTC have adopted a more accommodating stance toward oversight. The SEC earlier this week approved trading in tokenized stocks, and in August proposed a framework for crypto asset offerings as the Clarity Act remained stalled. Trump urged lawmakers last month to pass the Clarity Act, calling it "very powerful." Republicans have accused Democrats of deliberately blocking it, while Democrats have focused objections on the bill's ethics provisions. The debate has also drawn scrutiny of potential conflicts of interest. Trump received support from major industry participants during his campaign and after taking office, and his family has profited from digital-asset ventures. Some lawmakers have raised conflict allegations; the White House has denied wrongdoing. A revised draft circulated in July sought to address ethics concerns and would bar officials from making money from crypto, though some Democrats said the changes did not go far enough. The Clarity Act would formally split oversight among regulators by classifying digital assets as securities, commodities, or stablecoins.