CFTC signals crypto rulemaking advance as CLARITY Act stalls in U.S. Senate

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CFTC advances crypto rulemaking

Highlights

CFTC Chair Michael Selig directs staff to permit leveraged crypto trading and threatens rapid rulemaking if the CLARITY Act stalls in the Senate.
CLARITY Act's Senate passage hinges on a 60-vote threshold in September, complicated by Democratic demands over Trump family's $1.4 billion 2025 crypto gains.
CFTC focuses on developer protections and event-contract markets, aligning with recent SEC rule proposals granting certain issuer exemptions and token safe harbors.

CFTC outlines fallback regulatory path

As reported by Cointelegraph, CFTC Chair Michael Selig says the agency will not remain inactive while Congress debates the Digital Asset Market Clarity, or CLARITY, Act.

In prepared remarks for the inaugural meeting of the CFTC’s Innovation Advisory Committee on Thursday, Selig says he has already directed staff to allow registered and non-registered entities to offer crypto asset trading on a leveraged or margined basis and to explore protections for developers. He says the commission is giving the legislation time for a vote, but will move quickly to propose new industry rules if the bill fails to gain enough Democratic support and reach the president’s desk.

The bill is effectively on hold until the Senate returns in September, when Majority Leader John Thune is expected to hold a cloture vote. CLARITY needs 60 votes to clear the chamber and return to the House of Representatives before it can be sent to President Donald Trump for approval or veto.

Political and market implications broaden

Selig’s remarks come a day after he appears alongside Trump and crypto industry executives at a White House meeting, where the president urges Congress to pass what he calls a fair version of the bill to keep the country ahead of China.

Congressional Democrats continue to push for stronger ethics provisions in the market structure legislation, specifically targeting concerns over the Trump family’s crypto investments, which the text says netted the president $1.4 billion in 2025. Though Trump says many Democrats back the measure, it remains unclear whether supporters can meet the 60-vote threshold in the Senate.

The CFTC’s approach mirrors action at the U.S. Securities and Exchange Commission, which on Tuesday releases proposed digital asset rules that could give crypto companies a safe harbor from some tokens being treated as investment contracts and offer certain issuer exemptions.

Selig remains the only Senate-confirmed commissioner at the CFTC, leaving him solely responsible for steering the agency’s agenda since December. At Thursday’s committee meeting, the regulator also discusses artificial intelligence and prediction markets, where the agency maintains it has exclusive jurisdiction over event-contract platforms and has pursued litigation involving companies including Kalshi and Polymarket.

Trump’s push for a “fair” version of the CLARITY Act after a White House meeting with crypto executives helped spark a rebound across digital assets, with Bitcoin climbing above $70,000 and crypto-linked stocks also rising. In our earlier coverage, we noted that investors are treating the bill as a potential regulatory turning point ahead of a key September Senate vote, even as ethics disputes and partisan divisions threaten its prospects.

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