After Clarity Act Stalls, CFTC Submits Crypto Rule Proposal

The Commodity Futures Trading Commission sent a proposal to the White House on Thursday aimed at regulating crypto transactions and markets.

Details of the regulations remain unclear, based on the posting on the Office of Management and Budget's website. The proposal carries the title "Regulation Crypto Asset Transactions and Regulation Crypto Asset Markets."

The CFTC's action follows Tuesday's Senate blockade of the long-awaited Clarity Act crypto legislation. Both the CFTC and the Securities and Exchange Commission had already stated they would proceed with crypto rulemaking regardless of the law's fate.

CFTC Chair Mike Selig said on Wednesday that despite the Clarity Act not advancing, the watchdog would still assist U.S. President Trump in "get the job done" for regulating the crypto space.

"The outcome of yesterday's Senate vote was unfortunate," Selig wrote on X, adding that the CFTC was "locked in and ready to ship its rules for the new frontier of finance."

Prior to this week's procedural vote on the legislation, Selig had indicated he would move forward with rulemaking whether or not the Clarity Act passed, with the aim of finalizing rules before the end of the administration's term.

Senators confirmed Selig as the regulator's chair last year. Previously the chief counsel at the SEC's Crypto Task Force, Selig was called "instrumental in driving forward the President's crypto agenda" by White House Crypto and AI Tsar David Sacks.

President Trump campaigned on a platform to support the crypto space after the prior administration's regulators sued digital asset businesses, mostly over allegations of selling unregistered securities.

Since Trump took office, both the SEC and CFTC have adopted a more accommodating stance toward oversight of the sector.

The CFTC is not alone in pursuing rulemaking: the SEC earlier this week approved trading in tokenized stocks. In August, the SEC also proposed its own framework for crypto asset offerings, moving ahead while the landmark legislation remained stalled.

President Trump last month pressed lawmakers to pass the Clarity Act, describing the legislation as "very powerful," though Republicans accused Democrats of deliberately delaying it.

Democrats focused their objections mainly on the ethics provisions of the bill. Trump received backing from major industry figures while campaigning, and since becoming president his family has earned money from digital asset ventures.

Some lawmakers have raised conflict-of-interest concerns. The White House has consistently denied any misconduct.

A revised draft of the bill began circulating in July, addressing ethics and barring officials from profiting from crypto. However, some Democrats argued it did not go far enough.

The Clarity Act aims to formally split oversight among regulators, clarifying which digital assets count as securities, commodities or stablecoins.