CFTC Chairman Michael Selig called on Congress to pass the Clarity Act before the August recess, describing the crypto market-structure legislation as "so close" to completion. The remarks, made in a public statement, underscore the urgency of the regulatory push as lawmakers face a tight deadline.
Selig emphasized the need for clear rules for digital assets, arguing that the bill would provide much-needed regulatory clarity for the crypto industry. However, negotiations remain bogged down by disagreements over ethical guidelines and specific stablecoin provisions, according to reports.
The Clarity Act aims to define which digital assets fall under CFTC versus SEC jurisdiction, a key issue for market participants. Passage before the recess could accelerate the pace of crypto regulation, though failure to do so may delay progress until after the break.
Market reaction was muted, with Bitcoin trading near $67,000 amid broader uncertainty. The bill's fate could influence institutional adoption, as clearer rules are seen as a prerequisite for broader participation.
Critics argue the legislation may not go far enough, with some consumer advocacy groups warning that rushed provisions could weaken investor protections. Selig's comments have not quelled these concerns, highlighting the divide between expediency and thorough oversight.