WASHINGTON, August 20, 2026 — Commodity Futures Trading Commission Chairman Michael S. Selig said he has directed CFTC staff to explore rules for a crypto asset market structure under the agency’s existing authorities, laying out a potential regulatory route if Congress does not advance crypto market structure legislation.
The approach could allow existing CFTC registrants and currently unregistered crypto exchanges to be designated as a type of designated contract market, or DCM, known as a “crypto asset market.” Selig said such markets could offer crypto asset trading on a leveraged or margined basis under CFTC oversight and “purpose-fit” rules.
No rule has been proposed. Selig said he intends to give Congress time to vote on CLARITY before directing staff to move swiftly to propose rules if the legislation does not advance, making the work underway a potential alternative to congressional action rather than a formal rulemaking initiative.
Selig outlined the approach Thursday at the inaugural meeting of the CFTC’s Innovation Advisory Committee in Washington as part of what he called his “Roadmap for the New Frontier of Finance.” He also said he has directed staff to engage with developers of onchain finance protocols on ways they can offer their protocols legally and compliantly in the United States.
A potential CFTC framework for crypto exchanges
The contemplated framework would use authority the CFTC already holds rather than depend on Congress granting the agency new powers. Selig did not provide detailed eligibility requirements for a crypto asset market designation or specify which crypto assets or transactions would fall within the framework.
His remarks instead identified the DCM structure as a possible regulatory vehicle. DCMs are CFTC-regulated markets for derivatives, and Selig said the contemplated crypto asset market would be a type of DCM potentially available to both current registrants and non-registrant crypto exchanges.
Selig presented the approach as a regulatory option if legislation stalls while continuing to argue that congressional action is the preferred outcome. He said passing bipartisan crypto asset market structure legislation is the most important step toward establishing a durable framework and that the CFTC stands ready to begin implementing the legislation immediately if passed.
Selig specifically urged passage of CLARITY, which he said would codify the jurisdictional line for crypto assets and establish statutory core principles for crypto asset spot markets. His remarks did not announce that the CFTC had formally adopted an alternative framework or begun a rulemaking proceeding.
SEC coordination and onchain protocols
The remarks also highlighted coordination between Selig and Securities and Exchange Commission Chairman Paul S. Atkins on the regulatory treatment of digital assets. Selig said he partnered with Atkins through Project Crypto to codify a clear taxonomy for crypto assets that would provide certainty over which types are securities and which are not.
Selig separately directed CFTC staff to engage with developers of onchain finance protocols. He said the goal is to establish ways for developers to offer their protocols legally and compliantly in the United States, but did not specify what regulatory treatment or protections could result from those discussions.
The crypto measures form part of a broader innovation agenda that also covers compute and prediction markets. Selig said the CFTC is working with the Department of Commerce on compute markets following a request for comment issued earlier in the week, while also outlining further regulatory changes for prediction markets.
Why it matters
Selig’s directive puts staff work behind a potential path for crypto market structure that could rely on the CFTC’s existing authorities if legislation does not advance. While no rule has been proposed and key details remain unresolved, the framework he outlined could create a CFTC-supervised route for existing registrants and currently unregistered crypto exchanges to operate as crypto asset markets offering leveraged or margined trading.
The initiative also extends beyond centralized trading venues through Selig’s directive for staff to engage with onchain protocol developers on compliant pathways in the United States. For now, he has positioned the potential CFTC framework as an alternative if Congress does not advance market structure legislation, leaving any formal rulemaking dependent on the legislative process and the outcome of the staff work he has directed.
