CFTC Chair Selig signals unilateral crypto rules if CLARITY Act stalls

CFTC Chair Michael Selig said the agency will write cryptocurrency rules using existing authorities if Congress fails to pass the CLARITY Act, a legislative proposal that would split crypto oversight between the SEC and CFTC.

Selig made the statement at a CFTC Innovation Advisory Committee event on August 20. He directed staff to explore what rules the agency could adopt within its current powers and said he will instruct them to move swiftly to propose those rules if the CLARITY Act stalls in Congress, according to multiple sources including Bloomberg and The Hill.

The CLARITY Act, introduced in Congress earlier this year, would assign retail spot crypto trading to SEC jurisdiction and futures and derivatives to the CFTC. The bill has not advanced to a floor vote in either chamber. If Congress does not formally divide jurisdiction, the CFTC will attempt to regulate crypto markets under statutes already on the books.

The CFTC has historically regulated commodity futures and derivatives. Selig's predecessor, Rostin Behnam, also said the agency would act unilaterally if Congress failed to pass crypto legislation, but the operating threat has sharpened as the 119th Congress moves toward its close without passing CLARITY or competing proposals.

No specific timeline for rule proposals was provided. The CFTC staff's exploration of existing authorities would likely focus on tools already available under the Commodity Exchange Act, though legal scholars disagree on whether the statute's current language cleanly covers spot crypto trading or only derivatives.

Selig's move pressures Congress to act before the agency fills the vacuum. The threat of unilateral rulemaking has historically motivated legislators to negotiate rather than defer, though the outcome depends partly on which party controls Congress next year and whether it prioritizes finality over continued legislative gridlock.

The statement the CFTC will make if it does move to propose rules will reveal what the agency believes its existing authority permits, and where it expects legal challenges.