Commodity Futures Trading Commission Chair Michael S. Selig has directed agency staff to begin developing crypto market structure rules that would take effect if Congress fails to pass the CLARITY Act, marking the clearest signal yet that U.S. crypto oversight is advancing regardless of legislative gridlock.
Speaking at the inaugural meeting of the CFTC's Innovation Advisory Committee on August 20, 2026, Selig said passing bipartisan market structure legislation remains his preferred path. The CLARITY Act (H.R. 3633), which would establish a federal framework for digital assets and clarify the roles of the CFTC and the Securities and Exchange Commission, passed the U.S. House in 2025 but has since stalled in the Senate, where it needs 60 votes to advance. Senate Majority Leader John Thune filed cloture on August 8, setting up a procedural vote after the Senate reconvenes on September 15, but passage remains uncertain given that Republicans hold only 53 seats and need at least seven Democrats to cross the threshold.
"If Clarity continues to stall because of Democrat obstruction, the CFTC will utilize its existing authorities to begin establishing a regime for crypto asset markets," Selig said, according to remarks reported by Decrypt and CoinDesk. He added that he had already "directed the CFTC staff to begin exploring rules to codify a CFTC market structure for crypto assets using the agency's existing authorities."
Under the contingency framework outlined by Selig, current CFTC registrants and currently unregistered crypto exchanges could come under CFTC oversight and offer leveraged or margined crypto trading under rules tailored to digital asset markets. The agency would also engage with developers of on-chain finance protocols on how they could legally operate in the United States. Selig characterized this as "future-proofing developer protections once and for all," echoing language President Donald Trump used during a August 19 press conference with crypto executives at the White House.
The directive carries significant weight because legislation, once enacted, is harder for a future administration to reverse. Selig made this case explicitly, warning that passage of the CLARITY Act is "the surest way that we can prevent another Gary Gensler from running a rogue campaign of lawfare against the individuals and companies in this room today," referring to the former SEC chair who pursued enforcement actions against numerous crypto startups.
The move fits within a broader pattern of coordinated U.S. regulatory activity. The CFTC and SEC have been working together through what they call Project Crypto, and the SEC on August 14 proposed Regulation Crypto, its first formal rulemaking for digital asset offerings. During the August 19 White House event, Trump also said Selig is working to bring decentralized perpetual futures exchange Hyperliquid into the United States in a compliant manner.
However, the CFTC's ability to act unilaterally has limits. The agency's existing authority under the Commodity Exchange Act covers derivatives and futures markets, but its jurisdiction over spot crypto trading is contested and would likely face legal challenges. A regulatory framework built on executive authority rather than statute would also be more vulnerable to reversal by a future administration, undermining the durability Selig himself identified as a key advantage of legislation.
Selig said the agency will give Congress more time before moving forward. "Rest assured, I will direct CFTC staff to move swiftly to propose these rules for the industry," he said. The timeline for any formal rulemaking remains conditional on how the CLARITY Act debate resolves in the coming weeks.
Sources
- [CFTC - August 20 IAC Meeting](https://www.cftc.gov/node/259891)
- [Decrypt - CFTC Chair Readies Crypto Rules If Congress Fails to Pass Clarity Act](https://decrypt.co/376151/cftc-chair-crypto-rules-if-congress-fails-clarity-act)
- [CryptoBriefing - CFTC's Selig says crypto market structure is coming whether Congress acts or not](https://cryptobriefing.com/cftc-selig-crypto-market-structure-clarity-act/)
- [BlockchainReporter - CFTC Chief Warns Of Crypto Rules If Clarity Fails](https://blockchainreporter.net/cftc-chair-crypto-rules-clarity-act-fails/)
- [CoinAlertNews - CFTC Chair Selig Orders Draft Crypto Rules If Clarity Act Stalls](https://coinalertnews.com/news/2026/08/20/cftc-crypto-rules-clarity-act)
