CFTC chair to issue crypto rules if Congress stalls on CLARITY

CFTC chair Michael Selig said Thursday he has directed staff to study potential rulemaking on crypto market structure if Congress delays the CLARITY Act. Speaking at the CFTC’s Innovation Advisory Committee meeting, Selig said the agency is exploring a framework for designating crypto exchanges—under its existing authority—as a type of designated contract market, including allowing leveraged or margin-based trading. He also directed engagement with developers building on-chain finance protocols, aiming to create legal pathways for decentralized finance in the United States. Selig said the agency will wait for “a vote” on CLARITY but warned it would move quickly if lawmakers cannot agree on a bipartisan bill. CLARITY missed a Senate vote before the August recess.