The Commodity Futures Trading Commission has begun preparing crypto market rules as lawmakers struggle to advance the Clarity Act. CFTC Chair Michael Selig directed agency staff to develop a framework using existing regulatory powers. The move signals that regulators could act independently if Congress fails to deliver legislation.
CFTC Plans Alternative Path
Selig still favors bipartisan legislation because it could provide clearer and more durable market rules. However, continued delays could push the agency toward unilateral action. Consequently, CFTC officials could move quickly once they determine the framework can withstand legal scrutiny.
The proposed approach could bring crypto exchanges and existing CFTC registrants under broader oversight. Additionally, eligible platforms could offer leveraged and margined digital asset trading under tailored requirements.
Focus Shifts Toward On-Chain Finance
In addition to exchange regulation, Selig wants to get staff working directly with on-chain finance developers. The initiative might create more defined compliance routes for de-centralized protocols in America.
Further, the CFTC’s attention now seems to be on bringing decentralized markets into the regulated financial system. That might stimulate innovation and provide developers with better expectations.
Congress Still Holds the Key
President Donald Trump has also urged lawmakers to advance a workable Clarity Act. Significantly, legislation could create stronger protections against future regulatory reversals.
Therefore, the Congress is still at the forefront of setting long-lasting regulations in the crypto market. If lawmakers continue delaying the bill, the CFTC could instead accelerate its regulatory plans.
Related: Armstrong Sees Crypto Bull Run Near as CLARITY Act Heads for Senate Vote
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