CFTC Chair Selig Says Regulator Is Preparing for '24-7, On-Chain' Markets
Key Takeaways
- •CFTC Chair Mike Selig said the agency is readying itself for financial markets that run around the clock on-chain through algorithms and agentic finance.
- •The CFTC will continue digital asset rulemaking despite lawmakers blocking the Clarity Act last week, with Selig pledging to help President Trump advance crypto regulation.
- •The Clarity Act, designed to divide digital asset oversight by classifying tokens as securities, commodities, or stablecoins, stalled after banking lobby objections to stablecoin rewards and ethics concerns raised mostly by Democrats.
- •The CFTC last week sent the White House a proposal to regulate crypto transactions and markets, while the SEC approved tokenized stock trading and proposed its own crypto asset framework in August.
- •With the Clarity Act blocked, agency rulemaking is currently the primary path through which U.S. digital asset regulation is moving forward.
Commodity Futures Trading Commission (CFTC) Chair Mike Selig says the agency is preparing for a future in which financial markets operate "24-7, on-chain."
In a Wednesday interview with CNBC, Selig described the present as an exciting time to be overseeing markets tied to crypto and artificial intelligence, and said the regulator is pressing ahead with rulemaking for the digital asset space even after lawmakers last week blocked the long-awaited Clarity Act. Following the vote on the landmark legislation, Selig said the watchdog would still help U.S. President Donald Trump "get the job done" in regulating digital assets.
"Our markets are rapidly evolving," Selig said. "We really have to reevaluate all of our rules and regulations to make sure that we're ready and prepared for this transition to 24-7 on-chain and these automated markets that are facilitated through the use of algorithms and agentic finance." Selig also shared his remarks in a post on X. Traditional exchanges operate during set trading hours, in contrast to the always-on model Selig described.
The Clarity Act seeks to formally divide oversight among regulators, drawing clear distinctions between digital assets that are securities, commodities, or stablecoins — distinctions that would determine which agency writes and enforces the rules for each category of digital asset. The bill stalled and stumbled this year, however, as the banking lobby objected to crypto companies paying customers stablecoin rewards, while some lawmakers — mostly Democrats — raised concerns about the ethics side of the legislation.
Trump received backing from major industry players while campaigning, and since becoming president his family has made money from digital asset ventures. Some lawmakers have alleged conflicts of interest; the White House has consistently denied any wrongdoing.
Despite the legislative setback, the CFTC and the Securities and Exchange Commission (SEC) have charged ahead with rulemaking. The CFTC last week sent a proposal to the White House to regulate crypto transactions and markets. The SEC, meanwhile, approved tokenized stock trading the same week, and in August it proposed its own framework for crypto asset offerings while the landmark bill remained stalled. With the Clarity Act blocked, agency rulemaking is, for now, the main avenue through which U.S. digital asset rules are advancing.
Selig formerly served as chief counsel at the SEC's Crypto Task Force. White House Crypto and AI Tsar David Sacks described him as "instrumental in driving forward the President's crypto agenda."
President Trump in August urged lawmakers to get the Clarity Act over the line, referring to the legislation as "very, very powerful."
This article reported by Mathew Di Salvo and first appeared on Bitcoin Magazine.
