On August 20, CFTC Chairman Michael Selig stated in remarks at the inaugural meeting of the agency’s newly created Innovation Advisory Committee that he has directed staff to begin exploring rules to codify a crypto asset market structure using the CFTC’s existing authorities. Chairman Selig explained that his instruction to staff was prompted by concerns that the CLARITY Act — bipartisan legislation that would establish a statutory framework for digital assets — may continue to stall in Congress. According to Selig, potential options for rulemaking to codify a market structure for crypto assets may include allowing current registrants and non-registrant crypto exchanges to be designated as a type of designated contract market (DCM) known as a “crypto asset market” and to offer crypto asset trading on a leveraged or margined basis subject to CFTC oversight. The chairman also stated he has directed staff to engage with developers of onchain finance protocols to establish ways they can offer their protocols in a compliant manner.

The remarks also addressed recent and forthcoming amendments to event contract and DCM listing rules, as well as a request for comment on “compute” markets as part of the administration’s AI Action Plan.