CFTC Chairman Michael Selig announced that the agency will proceed with digital asset rulemakings even if Congress does not pass the CLARITY Act, stating that the CFTC developed its proposals in parallel with congressional negotiations on the legislation.

Selig made his remarks on Aug. 4 at the Flyover Fintech conference in Lincoln, Nebraska, an event hosted by Rep. Mike Flood. He indicated that the CFTC aims to finalize its digital asset rule proposals before the current administration ends, a timeline that reflects the practical pressure on agencies to cement policy priorities before a potential change in leadership.

CFTC Prepares Rules Alongside CLARITY Act Negotiations

According to Selig, the CFTC prepared digital asset rule proposals simultaneously with CLARITY Act discussions on Capitol Hill. The agency stands ready to issue those proposals should Congress pass the legislation, but Selig emphasized that the rulemaking effort will move forward regardless of legislative action. The CLARITY Act is one of several market-structure bills that Congress has considered in recent years as lawmakers seek to resolve the long-standing jurisdictional overlap between the CFTC and SEC over digital assets.

Selig also noted that he and SEC Chairman Paul Atkins are prepared to develop joint rules clarifying each agency's respective areas of authority over digital asset markets. This interagency coordination addresses a regulatory gray area that has persisted since crypto markets grew rapidly without a clear statutory framework assigning primary oversight. In the meantime, the CFTC continues to exercise its existing authority across areas already covered by commodities law.

Existing Authority Leaves Spot Market Gap

Under current law, the CFTC can regulate crypto derivatives and pursue enforcement actions against fraud and manipulation within its commodities jurisdiction. The agency can also establish rules for entities already under its oversight.

However, this authority does not extend to comprehensive control over U.S. spot markets for digital commodities. The CLARITY Act, if enacted, would grant the CFTC exclusive jurisdiction over qualifying digital commodity spot transactions and introduce registration requirements for digital commodity exchanges, brokers, and dealers. This gap has meant that U.S. spot crypto trading has operated without a unified federal regulatory regime comparable to those governing traditional securities or commodities markets.

Without congressional approval, those expanded powers cannot be created through CFTC rulemaking alone, as federal agencies derive their jurisdiction exclusively from statutes enacted by Congress.

CFTC Advances Broader Crypto Market Initiatives

The agency has been active across multiple crypto-related fronts, including tokenized collateral, crypto derivatives, prediction markets, and 24-hour trading initiatives. These efforts reflect the CFTC's strategy of using its existing statutory tools to address emerging market structures while awaiting potential legislative expansion. It has also withdrawn certain older digital asset guidance documents, signaling a shift in the agency's approach under current leadership. Notably, the CFTC previously launched a pilot program permitting Bitcoin, Ether, and USDC to serve as collateral in derivatives markets.

Congress continues to debate broader market-structure legislation. Separately, the SEC has been advancing its own crypto regulatory agenda under Project Crypto and is scheduled to consider Regulation Crypto Assets on Aug. 14. The parallel tracks at both agencies underscore the extent to which digital asset regulation is being shaped simultaneously through rulemaking, enforcement, and legislation—a fragmentation that market participants have frequently cited as a barrier to compliance and institutional adoption.

Under the CLARITY framework, the SEC would retain authority over securities and investment-contract arrangements, while the CFTC would oversee qualifying digital commodity spot markets and registered intermediaries.