CFTC Pushes for 'Independent Regulation'...Expresses 'Regret' Over US Crypto Bill's Defeat

▲ U.S. Commodity Futures Trading Commission (CFTC), Bitcoin (BTC), Ethereum (ETH)/AI generated image

As the U.S. crypto market structure bill faltered, the CFTC announced its intention to pursue independent regulations using existing authority.

According to crypto media outlet U.Today on September 16 (local time), Michael Selig, Chairman of the U.S. Commodity Futures Trading Commission (CFTC), announced plans for crypto market regulation less than a day after the Senate vote failed. He expressed regret over the Senate vote result, stating, “Americans deserve clear regulation, legal certainty, and consumer protection in the crypto market.”

The U.S. crypto market structure bill failed to advance to the next stage in the Senate with 49 votes in favor and 50 against. Democrats raised concerns about conflicts of interest in blockchain businesses linked to the White House, while the banking sector took issue with stablecoin yield payments. Immediately after the vote, Bitcoin dropped below $76,000. Shares of Coinbase (COIN) and Circle (CRCL) fell by 8% and 11% respectively.

Selig stated that he would not wait for Congress to resume legislative action. He said, “The administration has committed to building a crypto market structure that will work in the future, in whatever way possible.” He further emphasized, “We will complete that work using our existing legal authority.” He also stated, “The U.S. is the world's crypto capital and will remain so.”

The market focused on the possibility of direct regulation by the CFTC and the U.S. Securities and Exchange Commission (SEC) becoming a full-fledged reality instead of congressional legislation. Matt Hougan, Chief Investment Officer at Bitwise, believed that the confusion surrounding the market structure bill would not last long. He described the current regulatory environment from the perspective of large capital as a "win-win situation, where you win big on heads and still win on tails."

U.Today reported that institutional investors are paying attention to the possibility that individual rules from the CFTC and SEC might be applied more flexibly to decentralized finance (DeFi) and stablecoins than the compromise regulations included in the market structure bill. Selig's announcement clearly stated the CFTC's policy to continue building a crypto regulatory framework using existing laws, even with congressional legislation stalled.

[Key Article Summary]

-The U.S. crypto market structure bill failed to advance to the next stage in the Senate with 49 votes in favor and 50 against.

-CFTC Chairman Michael Selig announced that he would pursue independent crypto market regulation using existing legal authority.

-The market is watching what impact direct regulation by the CFTC and SEC will have on decentralized finance and stablecoins.

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