CFTC Chair Michael Selig Says Agency Will Write Crypto Rules If CLARITY Act Fails

US Commodity Futures Trading Commission (CFTC) Chair Michael Selig said at the agency’s inaugural Innovation Advisory Committee meeting that crypto regulation is not “waiting on Washington” to catch up, even as lawmakers debate the Digital Asset Market Clarity (CLARITY) Act.

“crypto regulation is not “waiting on Washington” to catch up”

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Selig said CFTC staff had already been directed to permit both registered and non-registered entities to provide “crypto asset trading on a leveraged or margined basis,” and to explore protections for developers.

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He framed the approach as giving CLARITY “breathing room” for a vote, but accelerating implementation if Congress fails to send what he described as a fair, bipartisan bill to the White House.

The legislative timeline described in the coverage ties CLARITY to a planned Senate cloture vote expected when the chamber returns in September, with the bill needing 60 votes to pass the Senate and then returning to the House for approval before reaching President Donald Trump’s desk.

In parallel, the CFTC’s agenda included prediction markets, with Selig reiterating the agency’s view of “exclusive jurisdiction” tied to event contracts.

Selig told the Innovation Advisory Committee that “We’re going to give CLARITY its breathing room for a vote,” but if Democrats cannot support a bipartisan work product and send a fair version to the President’s desk, he said he would direct CFTC staff to “move swiftly to propose these new rules for the industry.”

The CLARITY Act is described as effectively paused until the US Senate returns in September, when Majority Leader John Thune is expected to hold a cloture vote, and the bill would need 60 votes to pass the chamber and return to the House.

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The dispute centers on ethics and conflict-of-interest provisions, with coverage noting that Democrats have been calling for stronger ethics provision specifically to address the Trump family’s crypto investments, which netted the president $1.4 billion in 2025.

While the CFTC signals regulatory action if Congress stalls, the Securities and Exchange Commission (SEC) released proposed rules for digital asset regulation, including a safe harbor approach from tokens being treated as “investment contracts.”

SEC Chair Paul Atkins said in a prepared statement, “Advancing this regulatory framework is a key element in our strategy to advance the rule books for the modern era,” as the SEC proposal proceeds while CLARITY remains stalled through mid-September.

Beyond the legislative fight, the coverage links the CLARITY push to market expectations, saying cryptocurrency-related stocks surged on Thursday after the US Treasury Department said it would support more long-duration bonds and as Trump urged Congress to pass legislation establishing clear rules for digital assets.

“Bitcoin was last up 3.48% at $71,505”

Reuters

Reuters reported that bitcoin was last up 3.48% at $71,505 and had crossed the $70,000 mark for the first time since June, while ether gained 2.46% and was last trading at $2,272.

In the consumer-protection debate, Coinbase CEO Brian Armstrong told CBS News that “The current status quo today is that there isn't much clarity about what the rules are,” and said the bill “creates lots of consumer protections.”

Armstrong argued that the CLARITY Act would broaden consumer protections and prevent a repeat of the FTX fallout, and he said it would give “strong tools for law enforcement to go after illicit activity.”

The stakes described in the coverage extend to regulatory jurisdiction, with the CLARITY Act described as clarifying whether cryptocurrency qualifies as a security or a commodity and dividing oversight between the SEC and the CFTC, while noting that without legislation regulations are vulnerable to shifting political winds and court challenges.