CFTC Chair Says Crypto Market Structure Bill Nears Finish Line

Michael Selig, Chairman of the Commodity Futures Trading Commission (CFTC), said the long-debated Digital Asset Market Clarity Act, commonly referred to as the CLARITY Act, is “on the cusp” of becoming law.

Speaking in a recent Fox Business interview, Selig signaled that negotiations in Washington are entering their final stretch, potentially marking the end of years of regulatory uncertainty for digital assets in the United States.

Where the Bill Stands Now

As of February 18, 2026, the legislation is moving through its final procedural steps:

• House Approval: The U.S. House of Representatives passed the bill in July 2025 with a bipartisan 294–134 vote.
• Senate Progress: A related version advanced through the Senate Agriculture Committee in January 2026.
• Final Negotiations: Senate discussions are now in their concluding phase, with expectations the bill could reach the President’s desk in the coming months.

Selig stated that the administration is focused on “getting this thing across the line,” suggesting a coordinated push toward enactment.

What the CLARITY Act Would Change

The legislation aims to replace what many industry participants describe as “regulation by enforcement” with a defined statutory framework.

Key provisions include:

Clear Asset Classification
The bill establishes a formal token taxonomy to determine whether a digital asset qualifies as a security or a commodity.

Jurisdictional Division
Authority would be clearly split between the U.S. Securities and Exchange Commission (SEC) and the CFTC:

• SEC oversight for digital asset securities
• CFTC oversight for digital commodities such as Bitcoin and Ethereum

Spot Market Oversight
The CFTC would receive explicit authority over digital commodity spot markets, an area that currently lacks direct federal supervision.

Registration Window
Exchanges and brokers would have a 180-day window to register and obtain provisional status once the law takes effect.

Strategic Implications for the Industry

Selig emphasized that the goal is to “future-proof” the regulatory structure for crypto, making it more durable across political cycles.

For institutional investors, regulatory ambiguity has been one of the primary barriers to deeper market participation. A clear framework could reduce compliance risk, simplify licensing, and provide long-term operational certainty.

If passed, the CLARITY Act would mark one of the most significant structural shifts in U.S. digital asset policy to date, potentially redefining how crypto markets operate under federal law.

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