CFTC readies crypto rules as CLARITY stalls

TLDR

The US Commodity Futures Trading Commission (CFTC) is preparing to write its own crypto market rules if the CLARITY Act continues to stall in the Senate.

1. CFTC Chair Michael Selig has directed staff to explore formal crypto rulemaking under existing law, signalling the agency will not wait indefinitely for Congress.
2. The CLARITY Act, which would split crypto oversight between the CFTC and SEC, has passed the House but faces a tough 60 vote cloture hurdle and unresolved Senate disputes.
3. For crypto users and projects, this points to more CFTC centric regulation of US spot and derivatives activity, with key signals coming from the September 15 vote and future CFTC appointments.

Deep Dive

1. CFTC Turns To Rulemaking

At the CFTCs new Innovation Advisory Committee in August, Chair Michael Selig said the agency is ready to begin immediately implementing the bill if CLARITY passes, but also that the CFTC will act unilaterally if Congress does not move. He has already told staff to start exploring formal rulemaking for crypto markets using the CFTCs existing authorities under the Commodity Exchange Act, according to a detailed summary of his remarks.

That same account notes Selig saying that if CLARITY continues to stall, the CFTC will utilise its existing authorities to begin establishing a regime for crypto asset markets, effectively building a regulatory framework even without new legislation. This would likely focus first on derivatives, leveraged products and registered venues, where the CFTCs mandate is clearest.

2. CLARITY Act Gridlock

The Digital Asset Market CLARITY Act is the main market structure bill on the table. It passed the House in July 2025 by a 294 134 bipartisan vote and cleared the Senate Banking Committee in May 2026, but has not yet reached a full Senate vote. A crucial cloture vote is scheduled for 15 September and needs 60 votes to advance.

Reporting highlights several sticking points: ethics provisions demanded by Democrats, disputes over DeFi and stablecoin rewards, and law enforcement concerns about protections for noncustodial developers. The National Sheriffs Association has shifted from opposing to a neutral stance, but prosecutors groups still object to parts of the bill. With Republicans holding 53 seats, at least seven Democrats would need to break ranks, and observers see pre November passage as unlikely.

3. Impact On Crypto Users

For the industry, this creates a dual track: a broad statutory framework is uncertain in the near term, but regulatory tightening is coming anyway through the CFTCs own rules and case by case approvals. Recent moves by platforms seeking CFTC regulated paths for perpetuals and other derivatives fit this pattern, with US access hinging on CFTC sign off.

CFTC led rules could bring clearer standards for leverage, collateral and exchange obligations, but also more pressure on high leverage offshore products and some DeFi exposures that touch US users. Open CFTC seats are part of the bargaining over CLARITY and will shape how aggressive or industry friendly the final rulebook looks.

Conclusion

CFTC leadership is signaling that US crypto market rules are coming one way or another, even if Congress cannot finalize the CLARITY Act soon. That raises the odds of a CFTC centric framework for derivatives and some spot markets, with the remaining gaps filled by SEC enforcement and state regimes while lawmakers negotiate. For crypto participants, the key variables now are the September Senate vote, the composition of the CFTC commission, and the scope of the agencys first crypto specific rule proposals.