The chairman of the US Commodity Futures Trading Commission said the agency will move forward with its own cryptocurrency regulations if Congress fails to pass the Digital Asset Market Clarity Act, signaling an aggressive backup plan for market structure reform.
In prepared remarks for the inaugural meeting of the CFTC's Innovation Advisory Committee on Thursday, Michael Selig said the commission would not remain idle while lawmakers continue debating the market structure bill, adding that unilateral action would "help [Donald Trump] deliver if Congress will not."
Directives Already Underway
Selig said he has already directed staff to allow both registered and non-registered entities to offer crypto asset trading on a leveraged or margined basis, and to explore protections for software developers who build crypto infrastructure.
"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.
Senate Timeline and Vote Math
The CLARITY Act is effectively paused until the Senate returns to session in September, when Majority Leader John Thune is expected to hold a cloture vote. The bill needs 60 votes to pass the chamber before returning to the House, and ultimately reaching the President's desk.
Many Democrats have demanded stronger ethics provisions in the bill, specifically targeting the Trump family's crypto investments, which reportedly netted the president $1.4 billion in 2025. Although Trump claimed Wednesday that "a lot of Democrats" support the bill, it remains unclear whether enough lawmakers will cross the aisle to meet the 60-vote threshold.
Selig's remarks came a day after he stood alongside Trump and crypto industry leaders at a White House meeting, where the president urged Congress to pass a "fair version" of CLARITY to keep the country "ahead of China."
Parallel SEC Track and a Thin Commission
The CFTC's agenda mirrors activity at the Securities and Exchange Commission, which released its own proposed digital asset rules on Tuesday — including a potential safe harbor that would shield tokens from being treated as investment contracts, along with certain exemptions for issuers.
Selig currently operates as the only Senate-confirmed commissioner at the CFTC, a panel designed for five bipartisan members, and has solely directed the agency's agenda since December. The Innovation Advisory Committee meeting also addressed artificial intelligence and prediction markets, where the agency claims exclusive jurisdiction over event contracts — a position it is defending in lawsuits against state authorities in cases involving Kalshi and Polymarket.