CFTC chair says agency will move forward on crypto regulation if CLARITY fails

Michael Selig said at a meeting of the Innovation Advisory Committee that he had directed CFTC staff to explore developer protections and other crypto-related policies.

Michael Selig, who chairs the US Commodity Futures Trading Commission (CFTC), signaled that the agency would not be idle while Congress continued to debate provisions in a cryptocurrency market structure bill.

In prepared remarks for the inaugural meeting of the CFTC’s Innovation Advisory Committee on Thursday, Selig said that the commission would move forward on crypto regulations even in the absence of the Digital Asset Market Clarity (CLARITY) Act being passed by lawmakers, adding it would “help [Donald Trump] deliver if Congress will not.” According to the chair, he had already directed staff to allow registered and non-registered entities to offer “crypto asset trading on a leveraged or margined basis” and explore developer protections.

“We’re going to give CLARITY its breathing room for a vote, but if the Democrats cannot support a bipartisan work product, which reflects compromises from both sides of the aisle, and ultimately send a fair version of the bill to the President’s desk, then rest assured, I will direct CFTC staff to move swiftly to propose these new rules for the industry,” said Selig.

The market structure bill is effectively paused until the US Senate returns to session in September, when Majority Leader John Thune is expected to hold a cloture vote on the legislation. CLARITY would need 60 votes to pass the chamber and return to the House of Representatives, whereupon it could go to Trump’s desk for final approval or a veto.

Related: Trump claims he can ‘future proof’ crypto regulation with CLARITY Act

Selig’s remarks came just a day after the CFTC chair stood alongside Trump and other crypto industry leaders at a White House meeting. The president urged Congress to pass a “fair version” of CLARITY to keep the country “ahead of China.”

Many Democrats in Congress have been calling for stronger ethics provisions in the market structure bill specifically to address the Trump family’s crypto investments, which netted the president $1.4 billion in 2025. Although Trump said on Wednesday that a “lot of Democrats” approved of CLARITY, it’s unclear whether enough lawmakers will support the bill to meet the 60-vote threshold to pass the Senate. 

The CFTC chair’s agenda echoed that of the US Securities and Exchange Commission (SEC), which on Tuesday released proposed rules for digital asset regulation. The securities regulator said the rules could provide crypto companies with a safe harbor policy from tokens being treated as “investment contracts” and certain exemptions for issuers.

Selig spoke alongside Innovation Advisory Committee Chair Walt Lukken and the body’s Designated Federal Officer Michael Passalacqua on Thursday. As the only Senate-confirmed commissioner at the CFTC in a leadership panel expected to consist of a bipartisan group of five members, Selig has been solely responsible for directing the agency’s agenda since December.

The CFTC committee also discussed issues related to artificial intelligence and prediction markets on Thursday. Under Selig, the agency has claimed that it has “exclusive jurisdiction” over prediction markets due to event contracts on the platforms being considered “swaps.” The chair has directed the commission to file lawsuits against state-level authorities challenging this position in cases involving companies like Kalshi and Polymarket.

Magazine: Here’s why the CLARITY Act’s ethics deal may be so hard to reach

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