The CFTC is preparing crypto market rules in case Congress fails to pass CLARITY

CFTC (Commodity Futures Trading Commission) has started preparing a federal crypto market structure that it can pursue under existing law if Congress fails to pass CLARITY.

CFTC Chairman Michael S. Selig announced the work Thursday, saying his staff are now looking at rules that could bring both registered companies and currently unregistered crypto exchanges under a purpose-built CFTC framework.

He is also working with SEC Chairman Paul Atkins through Project Crypto on an asset classification system. But the CFTC is not planning to leave the market in limbo if CLARITY dies on Capitol Hill.

CFTC prepares its own crypto rules while Congress decides CLARITY’s fate

Selig noted that the CFTC already has authority to designate a new type of designated contract market (DCM) centered on crypto.

The current registered CFTC entities could be able to join, but unregistered cryptocurrency exchanges could apply for such designation. This framework would be applicable for margined and leveraged cryptocurrency trades with regulation specifically designed for these products.

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