The CFTC developed digital asset rule proposals alongside CLARITY Act negotiations and plans to advance them without new legislation. Selig said the CFTC and SEC could develop joint rules def
CFTC Chairman Michael Selig said the agency will advance digital asset rulemakings even if Congress fails to pass the CLARITY Act. Selig made the remarks Aug. 4 at the Flyover Fintech conference in Lincoln, Nebraska, hosted by Rep. Mike Flood. He said the CFTC developed proposals alongside congressional talks and aims to finalize them before the administration ends.
According to Selig, the CFTC prepared digital asset rule proposals in parallel with CLARITY Act negotiations. The agency remains ready to issue those proposals if Congress passes the legislation.
However, Selig said the rulemaking effort will continue without new legislation. He also said he and SEC Chairman Paul Atkins are prepared to develop joint rules defining their areas of authority.
Meanwhile, the CFTC continues using existing authority across areas covered by commodities law.
The CFTC can regulate crypto derivatives and address fraud and manipulation within its commodities authority. It can also establish rules for entities already under its jurisdiction.
However, that authority does not give the agency comprehensive control over U.S. spot markets for digital commodities. The CLARITY Act would provide that statutory authority if Congress approves it.
The legislation would give the CFTC exclusive jurisdiction over qualifying digital commodity spot transactions. It would also create registration requirements for digital commodity exchanges, brokers and dealers.
Without congressional action, those powers cannot come solely from CFTC rules. Federal agencies receive their jurisdiction from laws enacted by Congress.
The agency has worked on tokenized collateral, crypto derivatives, prediction markets and 24-hour trading. It has also withdrawn older digital asset guidance. Previously, the CFTC launched a pilot allowing Bitcoin, Ether and USDC to serve as collateral in derivatives markets.
Congress continues debating market-structure legislation. The SEC has also advanced its crypto agenda under Project Crypto. The securities regulator is scheduled to consider Regulation Crypto Assets on Aug. 14.
Under the CLARITY framework, the SEC would retain authority over securities and investment-contract arrangements. Meanwhile, the CFTC would oversee qualifying digital commodity spot markets and registered intermediaries.
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