Key facts
- CFTC Chair Mike Selig stated "It's Go Time" for the agency's crypto market structure rules.
- Selig believes the CFTC has sufficient statutory authority to act without new Congressional legislation.
- The CFTC's actions are expected to focus on regulating perpetual futures (perps) for crypto.
- The SEC approved an Innovation Exemption for tokenized US stocks to trade on public blockchains.
- The Trump administration is considering plans to promote USD-backed stablecoins internationally.
- Variational announced tokenomics including a 32% airdrop and a 100% treasury burn model.
CFTC Chair Mike Selig has signaled a strong push towards establishing regulatory rules for the cryptocurrency market, stating "It's Go Time" for the agency's efforts. Speaking on CNBC, Selig asserted that the CFTC possesses sufficient existing statutory authority to proceed with rulemaking without requiring new legislation from Congress. This stance comes after the Senate's recent blocking of the Clarity Act, highlighting a divergence in approach between legislative and executive branches regarding crypto oversight.
In the week following the Clarity Act's failure, a flurry of US crypto policy developments have occurred, none of which necessitated new bills. These include the SEC's approval of a five-year Innovation Exemption allowing tokenized US stocks to trade on public blockchains, a roundtable discussion on 24-hour trading involving major financial players, and the CFTC's issuance of a no-action letter enabling wallet applications to direct users to regulated derivatives platforms without requiring broker registration. Additionally, the SEC has advanced a crypto custody proposal to the Office of Management and Budget, and the CFTC has submitted two prerules to the White House concerning crypto asset transactions and markets.
Selig's vision extends beyond just crypto, as he indicated the CFTC must reassess all its rules in light of the transition to 24/7 on-chain markets driven by algorithms and agentic finance. This suggests the agency anticipates regulating markets where automated trading systems, rather than human traders, are dominant. While the CFTC cannot claim jurisdiction over the spot market, which still requires legislative action, its ability to create a designated contract market category could allow exchanges to offer leveraged crypto trading under its supervision. This development is seen as a significant positive for perpetual futures platforms like Hyperliquid and Lighter, potentially paving the way for their integration into the US regulatory framework.