Commodity Futures Trading Commission (CFTC) Chair Michael Selig announced that the agency is preparing its own regulatory framework for cryptocurrency markets if Congress fails to pass the bipartisan CLARITY Act. The legislative measure remains stalled in the Senate over Democratic demands for stricter ethics rules regarding President Donald Trump's family investments. Under the CFTC's contingency plan, the agency would designate crypto exchanges as 'crypto asset markets' and permit leveraged trading under existing authorities.
CFTC contingency rulemaking directive
- ▪Commodity Futures Trading Commission Commissioner Brian Quintenz stated in prepared remarks on August 20, 2026, that the agency would pursue its own rulemaking if the CLARITY Act fails to pass.
- ▪The Commodity Futures Trading Commission's proposed rulemaking process for digital assets will require a public notice-and-comment period that typically takes several months to complete.
- ▪Commodity Futures Trading Commission Chair Michael Selig directed agency staff to explore crypto market structure rules using the agency's existing authority if Congress fails to pass the CLARITY Act.
CLARITY Act legislative status
- ▪The CLARITY Act requires 60 votes to pass the Senate before it can be sent to the House of Representatives and then to the President for signature.
- ▪The CLARITY Act, which passed the House of Representatives in 2025, remains stalled in the Senate with negotiations paused until lawmakers return in September 2026.
- ▪Senate negotiations on the CLARITY Act are stalled primarily due to Democratic demands for stronger ethics and conflict-of-interest provisions, particularly regarding Donald Trump's family investments.
Proposed crypto asset market framework
- ▪The Commodity Futures Trading Commission's proposed framework would allow registered and unregistered crypto exchanges to be designated as 'crypto asset markets' and offer leveraged or margined trading.
- ▪Commodity Futures Trading Commission Chair Michael Selig directed staff to engage with on-chain finance protocol developers to establish legal and compliant pathways for their protocols in the United States.
CFTC-SEC coordination on asset classification
- ▪The Commodity Futures Trading Commission and the Securities and Exchange Commission are coordinating through 'Project Crypto' to clarify digital asset classification and regulatory treatment.
- ▪The Securities and Exchange Commission released a draft digital-asset regulatory framework, known as Regulation Crypto Assets, proposing a safe harbor and exemptions for certain issuers.
Trump administration alignment
- ▪Commodity Futures Trading Commission Chair Michael Selig stated that the agency's efforts align with President Donald Trump's call to codify a permanent digital asset market structure.
- ▪President Donald Trump urged Congress during a White House meeting on August 19, 2026, to pass a 'fair version' of the CLARITY Act to keep the United States ahead of China.
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