CFTC Pushes for Crypto Backup Plan if CLARITY Act Fails

In August 20 remarks, Selig directed agency staff to explore a regulatory fallback for digital asset markets using existing statutory powers. His framework would let certain crypto exchanges apply for designation as CFTC-regulated “crypto asset markets” dedicated to leveraged or margined trading.

The move injects a federal agency blueprint directly into the policy debate while the Senate struggles to move its overarching market-structure package. It falls well short of creating a new rule, approving any exchange, or handing the CFTC the broad spot-market authority that the CLARITY Act is meant to provide.

Selig orders prep work, not a finalized rulebook

Selig made it clear that Congress remains the preferred avenue, noting that the CLARITY Act could cleanly establish the dividing line between the SEC and the CFTC alo...