CFTC Moves to Advance Crypto Rules After CLARITY Act Setback

Commodity Futures Trading Commission Chairman Michael Selig says the agency is prepared to move forward with cryptocurrency regulations under its existing authority after the U.S. Senate failed to advance the CLARITY Act.

The Senate voted 49-50 against invoking cloture on the Digital Asset Market CLARITY Act on September 15, falling short of the 60 votes required to advance the legislation. Opposition included Democrats concerned about ethics provisions involving President Donald Trump’s crypto interests, while some lawmakers also raised concerns about stablecoin rewards and their potential impact on bank deposits.

The failed vote rattled cryptocurrency markets. Bitcoin slipped below $76,000, while crypto-related stocks including Coinbase came under significant selling pressure as investors reassessed the prospects for comprehensive U.S. crypto legislation.

Selig responded by emphasizing that the CFTC does not plan to wait indefinitely for congressional action. He said Americans need regulatory clarity, legal certainty and consumer protections in crypto markets, adding that the agency is prepared to use its existing statutory powers to develop rules for digital assets.

“The CFTC is locked in and ready to ship its rules for the new frontier of finance,” Selig said.

The move is not entirely new. In August, Selig directed CFTC staff to explore regulations that could establish a crypto market structure using powers already granted to the agency. Potential measures include regulatory pathways for crypto trading platforms offering leveraged or margin transactions.

The Securities and Exchange Commission is pursuing a similar approach. SEC Chairman Paul Atkins said this week that the agency's crypto agenda would continue “with or without” new market-structure legislation.

However, agency rulemaking cannot necessarily reproduce every provision of the CLARITY Act, and congressional legislation would provide more durable statutory certainty. House committee leaders have maintained that Congress still needs to establish permanent rules while supporting regulators' use of existing authorities in the meantime.