CFTC Chair Selig Warns Regulators Will "Write All the Rules" for Crypto if Clarity Act Stalls

The Block reported that CFTC Chair Michael Selig warned that regulators will end up writing all the rules for digital assets if Congress fails to pass the Clarity Act, as the Senate's legislative window narrows ahead of the August recess following a missed July 4 target.In a Fox Business interview, Selig urged lawmakers to advance the crypto market structure bill, which would divide oversight between the CFTC and the SEC. The House passed the legislation in July 2025, while the Senate Banking Committee advanced the measure on May 14 with two Democrats joining Republicans.Selig said the industry is operating under a patchwork of state laws and regulations he described as really bad for business, calling federal standards absolutely critical for certainty, clarity, and consumer protection.The CFTC chair pointed to mission creep beyond the bill's core objectives as the primary obstacle. Democrats have pressed for ethics language addressing President Trump, his family, and their crypto ventures, a demand Selig characterized as derailing a real bipartisan opportunity.Senate Digital Asset Subcommittee Chair Cynthia Lummis said lawmakers have been negotiating since last Labor Day, with discussions focused on decentralized finance, illicit finance provisions, and ethics rules.Galaxy Research cut its estimate for Clarity Act passage in 2026 to 50% from 60% in June, citing Senate calendar constraints. TD Cowen said passage before November midterms remains far from assured.Law enforcement groups raised concerns over Section 604, arguing that protections for non-custodial developers could create oversight gaps and complicate illicit finance investigations.