U.S. CFTC chief puts staff on notice to create crypto regulations if Clarity Act fails
CFTC Chairman Mike Selig has directed staff to develop a regulatory framework for crypto assets if Congress fails to pass the Clarity Act. The agency aims to establish a market structure similar to existing contract markets to provide legal certainty for developers and firms.
Why it matters
This signals a potential shift toward aggressive executive-branch regulation of the crypto industry, bypassing legislative gridlock to establish formal market rules.
Commodity Futures Trading Commission Chairman Mike Selig said Thursday that a U.S. Senate failure would spur his agency to start trying to create a "crypto asset market" regulatory label for firms much like the CFTC's existing category of designated contract markets (DCMs). He told those attending the inaugural meeting of the Innovation Advisory Committee that he's directed his staff to focus on that project.
"If Clarity continues to stall because of Democrat obstruction, the CFTC will utilize its existing authorities to begin establishing a regime for crypto asset markets," said Selig, wading into the politics to an extent that's unusual for sitting regulators. "We will heed President [Donald] Trump's call to codify a future-proof digital asset market structure that cannot be undone by the crypto haters."
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