Breaking: CFTC Chair Selig Says Agency Will Write Its Own Crypto Market Structure Rules if CLARITY Act Fails
CFTC Chair Michael Selig told the agency’s Innovation Advisory Committee that the Commodity Futures Trading Commission is prepared to move forward with its own crypto market structure rulemaking — including protections for software developers — if the CLARITY Act fails to clear Congress, according to a report from Cointelegraph.
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The remarks signal that the CFTC views federal digital asset market regulation as achievable through administrative rulemaking under existing Commodity Exchange Act authority, rather than waiting on a legislative grant of jurisdiction.
Context
The Digital Asset Market Clarity Act (CLARITY Act) is the leading congressional vehicle for allocating crypto oversight between the SEC and the CFTC, generally assigning spot "digital commodity" markets to the CFTC while leaving investment-contract offerings with the SEC. The bill cleared the House in 2025 but has not been enacted, and Senate action has moved slowly.
The Innovation Advisory Committee is a federal advisory body that develops recommendations for the Commission; its meetings are public and on the record, but its output is advisory and does not itself carry the force of law.
Implications
A CFTC-led rulemaking would reach US exchanges, brokers, and trading platforms through registration and market-conduct requirements adopted by notice-and-comment under the Administrative Procedure Act. That path is meaningfully narrower than statute: agency rules cannot resolve the SEC/CFTC jurisdictional boundary, are exposed to APA challenge, and can be revised or rescinded by a future Commission. The reference to developer protections is notable given ongoing uncertainty over non-custodial software developer liability, but any such safe harbor adopted by rule would bind only the CFTC — not the SEC or DOJ.
What’s Next
Watch for a CFTC proposed rule or advance notice appearing in the Unified Agenda, formal Innovation Advisory Committee recommendations, and Senate Agriculture and Banking Committee scheduling on CLARITY. US firms should track the comment period, which would be the primary opportunity to shape any framework.
This content is for informational purposes only and does not constitute legal advice. Consult with a qualified US attorney for guidance specific to your situation.
