CFTC Chair: Regulators Could End Up Writing Crypto Rules

Commodity Futures Trading Commission Chair Michael Selig warned that regulators could be forced to write the rulebook for digital assets if Congress does not pass the Clarity Act and urged senators to move the bill before the Senate leaves for its August recess.

The Clarity Act proposes to split oversight of crypto products and services between the CFTC and the Securities and Exchange Commission. The House approved the measure in July 2025. The Senate is negotiating its version after the Senate Banking Committee advanced the bill on May 14 with two Democrats joining Republicans.

Selig said the industry now operates under a patchwork of state laws and regulations that he described as “really bad for business.” He argued federal standards are needed to provide legal certainty and stronger consumer protection. He added, “We're so close. We have to get this done. Otherwise, you end up with regulators like me writing all the rules.”

Selig blamed additions beyond the bill’s core objectives for slowing negotiations, a dynamic he referred to as “mission creep.”

Senate Digital Asset Subcommittee Chair Cynthia Lummis has led talks since last Labor Day and outlined topics under discussion, including decentralized finance, illicit-finance provisions and ethics rules. Negotiators also revisited stablecoin language that banks had sought. Lummis had aimed to publish legislative text around the July 4 holiday before advancing the bill.

Some Democratic lawmakers pressed for ethics provisions addressing President Trump, his family and their crypto-related activities. Selig warned those negotiations could undermine bipartisan agreement on market-structure and enforcement issues.

Market analysts have trimmed expectations for passage. One research firm cut its estimate for the bill clearing Congress in 2026 to 50% from 60% in June, citing a tight Senate calendar and slow negotiations. Another firm said passage before the November midterm elections remains far from assured given unresolved political and policy disputes.

Law enforcement representatives raised concerns about Section 604, known as the Blockchain Regulatory Certainty Act, saying protections for non-custodial developers could create oversight gaps and complicate investigations into illicit finance.

With the Senate’s schedule narrowing and several policy and political differences still unresolved, supporters and agency officials say the coming weeks are key if the Clarity Act is to reach a floor vote before the August recess.