The U.S. Commodity Futures Trading Commission (CFTC) will advance its own regulatory framework for cryptocurrencies if Congress does not pass the Digital Asset Market Clarity (CLARITY) Act, Chair Michael Selig said on Thursday.
In prepared remarks to the CFTC’s Innovation Advisory Committee, Selig stated that the agency would not wait indefinitely for legislative action. He directed staff to allow both registered and non-registered entities to offer leveraged or margined crypto asset trading and explore protections for developers. "We’re going to give CLARITY its breathing room for a vote, but if the Democrats cannot support a bipartisan work product... then rest assured, I will direct CFTC staff to move swiftly to propose these new rules for the industry," Selig said.
The CLARITY Act, which aims to clarify regulatory jurisdiction over digital assets, remains stalled in the Senate. Majority Leader John Thune is expected to hold a cloture vote when lawmakers return in September. The bill requires 60 votes to advance, a threshold that remains uncertain amid partisan disputes over ethics provisions tied to President Donald Trump’s reported $1.4 billion in crypto-related gains in 2025. Trump has urged Congress to pass a "fair version" of the legislation to maintain U.S. competitiveness against China.
Selig’s comments followed a White House meeting on Wednesday, where he joined Trump and crypto industry leaders to advocate for the bill. The CFTC’s push aligns with recent moves by the Securities and Exchange Commission (SEC), which on Tuesday proposed rules to treat certain digital assets as "investment contracts" while offering exemptions for issuers.
The CFTC currently operates with a partial commission, as Selig remains the only Senate-confirmed commissioner in a leadership role. The Innovation Advisory Committee, chaired by Walt Lukken, also discussed artificial intelligence and prediction markets, with Selig asserting the CFTC’s "exclusive jurisdiction" over event-based contracts classified as swaps. The agency has filed lawsuits against state authorities challenging this stance, including cases involving Kalshi and Polymarket.
