28th August 2026
By Anjali Kochhar
The US Commodity Futures Trading Commission (CFTC) is preparing to move forward with its own regulatory approach for crypto markets if Congress fails to advance the CLARITY Act, adding fresh momentum to the debate over how digital assets should be regulated in the United States.
CFTC Chairman Michael Selig said on August 19 that the agency could use its existing authority to establish a regulatory regime for crypto asset markets if the legislation continues to stall in the Senate. His comments come as lawmakers remain divided over the proposed market-structure bill, which is intended to establish clearer rules for digital assets and define
What Is the CLARITY Act and Why Does It Matter for Crypto Regulation?
The CLARITY Act is designed to provide greater certainty around whether particular digital assets should fall under securities or commodities regulation. It would also establish clearer boundaries between the SEC and CFTC, an issue that has remained central to US crypto regulation for years. The House has already advanced the legislation, but its progress in the Senate has slowed amid disagreements over several provisions, including stablecoin-related issues and restrictions concerning political figures and crypto interests.
With congressional action delayed, Selig has directed CFTC staff to explore what rules could be introduced using the agency’s existing powers. The agency is also looking at ways to establish a legal and compliant pathway for developers of on-chain finance protocols. This could become particularly significant for decentralised finance platforms that have struggled to determine which regulatory requirements apply to their activities.
Challenges of a CFTC-Led Crypto Regulatory Approach
However, a CFTC-led approach would not necessarily replace the need for legislation. Legal experts cited by DeFi Rate warn that agency rules could leave important questions unresolved, particularly around the dividing line between securities and commodities. Rules created through regulatory authority could also be changed by future administrations, making them potentially less durable than a framework enacted by Congress.
The situation has also attracted attention from the White House. President Donald Trump has publicly urged Congress to pass a “fair version” of the CLARITY Act, arguing that clear digital-asset rules are important for maintaining US leadership in financial technology and supporting innovation.
Impact of New Crypto Rules on the Digital Asset Industry
For the crypto industry, the developments highlight both opportunity and uncertainty. A federal framework could provide businesses with clearer compliance requirements, encourage institutional participation and reduce regulatory ambiguity. At the same time, competing approaches from Congress, the CFTC and SEC could create overlapping or temporary rules.
For now, the CFTC appears prepared to act if lawmakers cannot reach an agreement. But Selig continues to view congressional legislation as the preferred solution. If the CLARITY Act advances, the CFTC could then focus on implementing the framework rather than creating a separate regulatory regime.
