CFTC Chair Vows to Advance Crypto Rules If Congress Fails to Pass CLARITY Act
CFTC to Propose Crypto Rules If CLARITY Act Stalls in Congress
The chair of the U.S. Commodity Futures Trading Commission (CFTC), Michael Selig, announced that the agency will move forward with new crypto regulations if Congress does not pass the Digital Asset Market Clarity (CLARITY) Act. Selig made the statement during the first meeting of the CFTC’s Innovation Advisory Committee on August 20, 2026.
Selig said he has directed CFTC staff to explore policies that would allow both registered and unregistered companies to offer crypto asset trading on a leveraged or margined basis. He also mentioned plans to develop protections for crypto developers. The CFTC will wait for Congress to vote on the CLARITY Act but will act independently if the bill does not pass.
"We’re going to give CLARITY its breathing room for a vote, but if the Democrats cannot support a bipartisan work product... then rest assured, I will direct CFTC staff to move swiftly to propose these new rules for the industry," Selig said.
What the CLARITY Act Means for Crypto Regulation
The CLARITY Act is a proposed law that would create clearer rules for how cryptocurrencies are regulated in the U.S. The bill is currently paused in the Senate and needs 60 votes to pass. If approved, it would return to the House of Representatives before going to President Donald Trump for final approval or veto.
Some Democrats in Congress have called for stronger ethics rules in the bill, particularly regarding the Trump family’s crypto investments, which reportedly earned the president $1.4 billion in 2025. Trump has claimed that many Democrats support the bill, but it remains unclear if it will get enough votes to pass.
Key Details from Selig’s Announcement
- The CFTC will wait for Congress to vote on the CLARITY Act but will propose its own rules if the bill fails.
- Selig has directed staff to explore allowing crypto trading on a leveraged or margined basis, which means trading with borrowed money.
- The CFTC is also looking into protections for crypto developers.
- The CLARITY Act needs 60 votes in the Senate to pass and is expected to be voted on in September.
- Some lawmakers want stronger ethics rules added to the bill before they will support it.
CFTC’s Current Regulatory Challenges
Selig is currently the only Senate-confirmed commissioner at the CFTC, which is supposed to have a five-member leadership panel. This has left him solely responsible for directing the agency’s agenda since December. The CFTC has also been involved in legal disputes over its claim that it has exclusive authority over prediction markets, which are platforms where people can bet on real-world events.
The agency has filed lawsuits against state regulators and companies like Kalshi and Polymarket, arguing that event contracts on these platforms should be treated as financial swaps, which fall under CFTC oversight.
What Is Confirmed
- CFTC Chair Michael Selig has directed staff to prepare new crypto regulations if the CLARITY Act does not pass Congress.
- The CFTC will allow a vote on the CLARITY Act but will act independently if the bill fails.
- The agency is exploring rules for leveraged crypto trading and developer protections.
- The CLARITY Act is paused in the Senate and needs 60 votes to pass.
- Selig is the only confirmed CFTC commissioner, leaving the agency short-staffed.
What Is Still Unclear
- Whether the CLARITY Act will receive enough votes to pass the Senate.
- What specific rules the CFTC will propose if the bill fails.
- How the CFTC’s proposed rules will differ from those in the CLARITY Act.
- Whether Democrats will support the bill with or without additional ethics provisions.
Why This Matters for Crypto
The CFTC’s announcement signals that U.S. regulators are prepared to take action on crypto rules even if Congress does not pass new laws. This could lead to clearer guidelines for crypto companies and investors, but it may also create uncertainty if the CFTC’s rules differ from those in the CLARITY Act.
If the CFTC moves forward with its own regulations, it could set a precedent for how crypto assets are treated in the U.S., particularly for trading on margin or leverage. This could affect how exchanges, developers, and traders operate in the country.
