CFTC Readies Own Crypto Market Rules as Congress Stalls CLARITY Act

If Congress doesn’t pass the CLARITY Act, the Commodity Futures Trading Commission (CFTC) will use its existing authorities to begin establishing a crypto asset market regime, CFTC Chairman Michael S. Selig said Thursday (Aug. 20).

In remarks delivered at the Innovation Advisory Committee Conference in Washington, D.C., Selig said: “We owe it to the American people to do so. President Trump promised to deliver a crypto asset market structure, and we will help him deliver if Congress will not.”

Selig said he has directed CFTC staff to explore rules to codify a CFTC market structure for crypto assets using the agency’s existing authorities and to engage with developers of on-chain finance protocols to establish ways in which those developers can offer their protocols in a legal and compliant manner.

Selig said he is still hopeful that Congress will pass the CLARITY Act and send it to the president’s desk. That, he said, is “the most important step towards future-proofing this industry.” Selig encouraged the industry to continue engaging with lawmakers to support the CLARITY Act, adding that the CFTC is ready to begin implementing the bill if it passes.

“We’re going to give CLARITY its breathing room for a vote, but if the Democrats cannot support a bipartisan work product, which reflects compromises from both sides of the aisle, and ultimately send a fair version of the bill to the president’s desk, then rest assured, I will direct CFTC staff to move swiftly to propose these new rules for the industry,” Selig said.

It was reported Aug. 10 that the CLARITY Act’s chances are fading after the Senate left for its five-week August recess without having voted on the digital asset legislation. A cloture vote is to be held Sept. 15 and will signal whether the bill has a future.

On Sunday (Aug. 16), it was reported that Trump administration officials are meeting with cryptocurrency and prediction market executives this week to foster policy discussions around innovation in the U.S. This includes the Innovation Advisory Committee Conference and additional meetings.

Securities and Exchange Commission (SEC) Chairman Paul S. Atkins told CNBC on July 27 that the SEC stands ready to step in to support the digital asset market if Congress fails to act on the CLARITY Act.