CFTC chair threatens to write crypto rules without Congress
Photo: US Nuclear Regulatory Commission / Wikimedia Commons (Public domain)
The federal regulator that oversees commodity markets is preparing to write its own crypto rulebook if lawmakers cannot get a bill across the finish line. CFTC Chair Michael S. Selig said Thursday he has directed agency staff to begin exploring crypto market structure rules using the commission’s existing authority. This move could reshape how digital asset exchanges and decentralized finance protocols operate in the United States.
For anyone who does not follow crypto regulation closely: the Clarity Act is a bipartisan bill that would create a federal framework for digital assets and spell out which agency, the CFTC or the Securities and Exchange Commission, oversees what. It has been stuck in Congress. Selig wants the bill to pass. But he made clear that waiting around is no longer the only option.
Selig lays out a Plan B at the CFTC’s new advisory panel
Selig announced the move at the inaugural meeting of the CFTC’s Innovation Advisory Committee, Decrypt reported. He called passing the Clarity Act “the most important step towards future-proofing this industry” but warned the agency would go it alone if needed.
“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,” Selig said.
He also took a shot at former SEC Chair Gary Gensler, who brought several costly lawsuits against crypto startups. Selig argued that legislation, rather than agency rulemaking, would be harder for a future administration to reverse. “Passing Clarity is the surest way that we can prevent another Gary Gensler from running a rogue campaign of lawfare against the individuals and companies in this room today,” he said.
What the CFTC framework could cover
The potential rules are broad. Under the framework Selig outlined, both current CFTC registrants and currently unregistered crypto exchanges could come under the agency’s oversight. Those platforms could offer leveraged or margined crypto trading under rules tailored specifically to digital asset markets.
Selig also directed staff to engage with developers of on-chain finance protocols, the software that powers decentralized trading and lending, to figure out how they could legally operate in the country. He referenced previous comments by President Donald Trump about protecting developers.
Trump himself has been pushing the bill. On Wednesday, the president urged Congress to pass a “fair version” of the Clarity Act. During a press conference with leading crypto executives the same day, Trump said Selig is working to bring Hyperliquid, a decentralized perpetual futures exchange, into the United States. The Block reported that Trump appeared “bullish” on the Clarity Act during a private Oval Office meeting with crypto and finance CEOs.
Congress still gets first shot
Selig stressed that the agency will give lawmakers more time before it starts formally proposing rules. But he left little doubt about the direction of travel.
“I will direct CFTC staff to move swiftly to propose these rules for the industry,” he said.
For everyday readers wondering why this matters: crypto trading in the U.S. currently sits in a gray zone. Neither the CFTC nor the SEC has clear, comprehensive authority over most digital assets. The Clarity Act was supposed to fix that. If it does not, Selig is signaling the CFTC will step into the vacuum on its own, a faster path but one that could be undone by the next administration.
