CFTC Chair Michael S. Selig said on August 20, 2026 that the agency is preparing crypto market rules of its own if Congress fails to pass the CLARITY Act, signaling that regulators will not wait indefinitely for lawmakers to settle the framework for digital asset markets.
Selig said he remains hopeful that Congress will deliver bipartisan crypto asset market structure legislation, but he made clear the CFTC has “other tools in the box” if the bill does not pass, according to his prepared remarks. He framed congressional action as the preferred path, not a formality the agency intends to sideline.
The message was pointed: legislation is the first choice, but it is not the only one. Selig said the agency would use existing authorities to establish a regime for crypto asset markets if the CLARITY Act stalls, positioning the CFTC as ready to act unilaterally.
How the CFTC Could Move Without the CLARITY Act
Selig said he directed CFTC staff to begin exploring rules that would codify a CFTC market structure for crypto assets using the agency’s existing authorities. That is exploratory rule preparation, not a finished rulebook, and it stops short of what a statute could deliver.
The contemplated framework could let current registrants and non-registrant crypto exchanges be designated as a type of designated contract market, or DCM. Under that approach, venues that currently sit outside the CFTC’s registration perimeter could be brought inside it.
The same regime could permit leveraged or margined crypto asset trading under purpose-fit CFTC rules. The move echoes broader signals that crypto perpetuals could return to the U.S. market as the CFTC shapes rules for products that have largely operated offshore.
What the agency cannot do on its own is redraw the statutory line between the SEC and the CFTC over crypto spot markets. Selig argued that only Congress can codify that jurisdictional boundary and set statutory core principles for spot trading, which is why he still frames legislation as the cleaner outcome.
Where the CLARITY Act Stands in Congress
The bill at issue is H.R. 3633, the Digital Asset Market Clarity Act of 2025. The Senate Banking Committee held an executive session on May 14, 2026 to consider it, according to the committee’s official schedule.
Sen. Cynthia Lummis said on July 22, 2026 that updated CLARITY Act text reflected the merged work products of the Banking and Agriculture Committees, and that the bill passed out of the Banking Committee by a 15 to 9 bipartisan vote in May 2026.
That timeline explains why Selig is raising a fallback now. The bill has cleared committee and gained updated text, but it has not become law, and the gap between committee advancement and a floor vote is where the CFTC’s contingency planning fits. Lawmakers have signaled that Congress can still advance the crypto bill despite stalled negotiations on adjacent issues.
Why the Fallback Matters for Exchanges and Policy Watchers
Agency rule preparation is materially different from Congress passing CLARITY. A CFTC rulemaking rests on existing authority that can be challenged or reversed, while a statute would give exchanges and institutional participants durable certainty on which regulator governs which market.
For exchanges, DCM designation would mean a concrete compliance path rather than the current patchwork. Decrypt reported that the possible framework could extend to crypto exchanges, leveraged trading, and on-chain finance protocols, widening the set of participants who would need to plan for CFTC oversight.
Selig framed the debate against the scale of the market the CFTC already touches, citing a roughly $1.2 quadrillion global derivatives market to argue that U.S. structure and oversight choices matter at enormous scale.
The market backdrop was firm as Selig spoke. Bitcoin was cited in the research package at $72,568, up about 6.1% on the day, with the Fear & Greed Index at 62, a Greed reading, when Selig warned the CFTC could move ahead without Congress.
Policy advocates have backed the legislative route. Coin Center said it is encouraged by the advancement of the CLARITY Act through the Senate Banking Committee, arguing the bill should form the basis of a de novo federal market structure framework while preserving developer protections.
Coin Center is encouraged by the advancement of the Clarity Act through the Senate Banking Committee with the BRCA included. As it heads to the floor, there may be a push to make concessions; the BRCA cannot be one of them. https://t.co/LULpU7SNKh
— Coin Center (@coincenter) May 14, 2026
Miles Jennings of a16z crypto has argued that CLARITY would finally create clear rules of the road for blockchain networks and digital assets, in the firm’s public analysis. The question the CFTC’s fallback raises is whether those rules arrive by statute or by agency action.
The debate over who leads on crypto has run through the CFTC before, including questions about how the agency’s leadership would redefine crypto rules. Selig’s remarks push that question from the abstract toward a concrete rulemaking track.
FAQ: What Comes Next if Congress Misses the Window
What happens if the CLARITY Act does not pass?
Selig said the CFTC would use existing authorities to build a market structure regime for crypto assets, and he has already directed staff to explore those rules. It would be an agency-led framework rather than a statute.
Can the CFTC regulate spot crypto markets on its own?
Only partly. The agency can shape rules for registrants, exchanges, and leveraged products under current authority, but Selig said codifying the SEC-CFTC jurisdictional line over spot markets requires Congress.
What should exchanges and policy watchers monitor next?
The next catalysts are any floor movement on H.R. 3633 following the July 22, 2026 updated text, and any formal CFTC rulemaking steps that turn Selig’s directed exploration into a proposed rule.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
