CFTC leader pledges independent crypto action if CLARITY legislation stalls
At the Innovation Advisory Committee gathering, Michael Selig announced he has instructed CFTC personnel to examine protections for developers and additional cryptocurrency policy measures.
The chairman of the US Commodity Futures Trading Commission (CFTC), Michael Selig, indicated that his agency would remain active as Congress continues deliberations on a cryptocurrency market structure bill's various provisions.
During prepared statements delivered at Thursday's first meeting of the CFTC's Innovation Advisory Committee, Selig announced that the commission plans to advance cryptocurrency regulations regardless of whether the Digital Asset Market Clarity (CLARITY) Act receives approval from legislators, stating it would "help [Donald Trump] deliver if Congress will not." The chairman revealed he had already instructed staff members to permit both registered and non-registered entities to provide "crypto asset trading on a leveraged or margined basis" while investigating protections for developers.
"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."
Michael Selig, CFTC Chair
The market structure legislation is essentially on hold until September when the US Senate reconvenes, at which time Majority Leader John Thune anticipates scheduling a cloture vote on the measure. The CLARITY bill requires 60 votes for passage through the chamber before returning to the House of Representatives, after which it would proceed to Trump's desk where he could sign it into law or exercise his veto power.
The remarks from Selig followed closely behind the CFTC chairman's appearance at a White House gathering where he joined Trump and other cryptocurrency industry executives. During that meeting, the president called upon Congress to approve a "fair version" of CLARITY to maintain the nation's position "ahead of China."
Numerous Democratic lawmakers in Congress have been advocating for more robust ethics provisions within the market structure legislation, particularly to address the cryptocurrency holdings of the Trump family, which generated $1.4 billion for the president in 2025. Despite Trump's Wednesday statement that a "lot of Democrats" support CLARITY, uncertainty remains about whether sufficient lawmakers will back the legislation to achieve the 60-vote threshold necessary for Senate passage.
The agenda outlined by the CFTC chair mirrored initiatives from the US Securities and Exchange Commission (SEC), which unveiled proposed digital asset regulatory rules on Tuesday. The securities regulatory body indicated the rules might offer crypto firms a safe harbor policy preventing tokens from being classified as "investment contracts" along with certain exemptions available to issuers.
CFTC still lacks a full panel of commissioners
During Thursday's proceedings, Selig appeared with Innovation Advisory Committee Chair Walt Lukken and the committee's Designated Federal Officer Michael Passalacqua. Serving as the sole Senate-confirmed commissioner at the CFTC within a leadership panel traditionally composed of a bipartisan group of five members, Selig has maintained complete control over directing the agency's agenda since December.
Topics related to artificial intelligence and prediction markets were also addressed by the CFTC committee on Thursday. During Selig's tenure, the agency has asserted it possesses "exclusive jurisdiction" over prediction markets based on the classification of event contracts on these platforms as "swaps." The chairman has ordered the commission to initiate legal proceedings against state-level authorities that contest this interpretation in matters involving platforms such as Kalshi and Polymarket.