CFTC Chair Selig warns that failure to pass the Clarity Act will force regulators to unilaterally establish crypto rules.
Regulation & Gov ·
CFTC Chair Michael Selig has warned that regulators risk taking unilateral action to establish cryptocurrency rules if Congress does not pass the Clarity Act. According to Selig, failure to advance the legislation would leave federal agencies to "write all the rules" for digital assets themselves.
The Clarity Act would establish congressional authority over crypto regulatory boundaries, clarifying jurisdictional lines between agencies like the CFTC and SEC. Without legislative action, Selig's warning suggests regulators would proceed independently to fill the gap, potentially creating overlapping or conflicting frameworks across multiple agencies rather than a unified approach negotiated through Congress.
The timeline for the Clarity Act and the likelihood of its passage remain unclear from available material. It is also not specified whether Selig's warning reflects a coordinated position across federal regulators or a concern unique to the CFTC's mandate.