Key facts
- CFTC Chair Michael Selig stated the agency will establish a crypto regulatory framework if Congress fails to pass the Clarity Act.
- Selig has directed CFTC staff to explore and propose rules for digital asset markets.
- The proposed framework could extend CFTC oversight to existing and unregistered crypto exchanges.
- Leveraged and margined crypto trading may be permitted under new rules.
- Bitcoin ETFs saw $606 million in net inflows on Thursday, and ETH ETFs had $219 million in inflows.
CFTC Chair Michael Selig has indicated that the agency will proceed with establishing its own regulatory framework for crypto asset markets if Congress fails to pass the Clarity Act. Selig stated that if the bill continues to stall due to "Democrat obstruction," the CFTC will utilize its existing authorities to create the necessary regime. He has already directed staff to explore rules for digital assets, with the intention of formally proposing them if legislative action does not occur.
Selig emphasized that while legislation is his preferred path for long-term stability, he is prepared to act if Congress remains gridlocked. The proposed CFTC framework could encompass existing CFTC registrants and currently unregistered crypto exchanges, potentially permitting leveraged and margined crypto trading under rules tailored for digital assets. Additionally, CFTC staff are to engage directly with developers of onchain finance protocols regarding legal operations in the U.S.
This development follows recent actions in Washington, including the SEC's proposal of its first formal crypto rules and Donald Trump's push for the Clarity Act in the Senate. Meanwhile, crypto markets have seen significant gains, with Bitcoin and Ethereum ETFs experiencing substantial inflows. Major cryptocurrencies, including Bitcoin, Ethereum, and Solana, have risen, alongside several altcoins and meme coins. Over $1.2 billion in crypto shorts have been liquidated in the past 24 hours as prices soared.