CFTC chairman signals acceleration of crypto regulatory framework following failed Clarity Act vote.
Regulation & Gov ·
CFTC Chair Mike Selig said the agency will proceed with writing crypto market structure rules, using the phrase "it's go time" on CNBC eight days after the Senate blocked the Clarity Act. Selig argued the CFTC's existing statutory authority permits the agency to act without Congressional approval, signaling a shift toward regulatory action via existing powers rather than waiting for legislation.
The week following the failed vote saw accelerated regulatory movement across multiple agencies. The SEC approved a five-year Innovation Exemption for tokenized US stocks on public blockchains, held a roundtable on 24-hour trading with major exchanges and the DTCC, and sent a custody proposal to OMB. The CFTC issued a no-action letter permitting wallet apps to route users to regulated derivatives without broker registration and filed two prerulemakings with the White House, both under RIN 3038-AF80.
The CFTC's jurisdictional boundaries remain a constraint. The agency can establish a designated contract market category for leveraged crypto trading under its oversight, but it cannot claim jurisdiction over spot markets—the central gap the failed Clarity Act sought to fill. This means regulatory focus will narrow to perpetual futures and derivatives, leaving spot market regulation unaddressed absent new legislation.