New CFTC chair pushes CLARITY Act as a chance to make the U.S. the “gold standard” for crypto rules
As uncertainty swirls around the crypto market-structure bill known as the CLARITY Act, Commodity Futures Trading Commission Chair Michael Selig is mounting a full-court press for its passage. In an interview with FOX Business, the newly appointed regulator argued the legislation could end years of ambiguity and establish the United States as the global benchmark for digital-asset oversight.
Selig said a lack of clear rules has driven innovation and capital offshore. The CLARITY Act, he explained, would bring long‑needed definition to the market by creating a “token taxonomy” and drawing clearer jurisdictional lines between regulators. For the first time, developers and investors could have a statutory framework that more precisely spells out what qualifies as a security, what does not, and how different digital assets should be treated under U.S. law.
The chair also challenged the prevailing notion of treating nearly all digital assets as securities. Calling that approach “outdated,” Selig argued many cryptocurrencies operate more like commodities and should fall under CFTC oversight rather than being regulated exclusively by the Securities and Exchange Commission.
Selig is optimistic about timing: he said the bill could reach President Donald Trump’s desk within the next couple of months and praised the president’s public support for the sector, suggesting executive backing could help propel the legislation forward.
Capitol Hill activity is heating up. Crypto reporter Eleanor Terrett posted on X that Senate Democrats plan a closed‑door meeting on crypto market structure this week — the first member‑level Democratic caucus discussion since the Senate Banking Committee delayed its markup last month. That postponement came after industry pushback, including Coinbase’s withdrawal of support over provisions addressing tokenized equities, decentralized finance and stablecoin rewards and yields. The opposition helped stall the bill in the Banking Committee, leaving its Senate timeline uncertain despite a separate version passing the Senate Agriculture Committee last week.
Why the bill matters (quick take)
- Token taxonomy: would create statutory definitions for different types of digital assets.
- Jurisdiction: aims to clarify which regulator — SEC or CFTC — oversees which products.
- Market impact: proponents say clearer rules could repatriate capital and unlock innovation; critics worry specific provisions (tokenized equities, DeFi, stablecoin mechanics) could constrain certain projects.
The CLARITY Act remains a pivotal piece of legislation for the industry; its passage — or continued delay — will shape which U.S. agency governs major swaths of crypto activity and how firms design products going forward.
Featured image from OpenArt, chart from TradingView.com.
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