The Regulator Says It Is Almost Here
CFTC Chairman Michael Selig is no longer speaking in conditionals. As of February 17, 2026, Selig has told multiple outlets that Congress is "on the cusp" of passing the Digital Asset Market Clarity Act, the market structure bill that would formally divide crypto oversight between the CFTC and the SEC. He projected the legislation could reach President Trump's desk "in the next couple of months," a timeline that, if accurate, would end years of jurisdictional limbo.
The statement landed with force. CoinDesk, Cointelegraph, and WatcherGuru all amplified it within minutes, with the WatcherGuru post alone drawing over 27,000 views and nearly 800 likes in its first hour. When the chairman of the agency poised to gain the most regulatory authority says a bill is imminent, the market listens.
This is not the first time Selig has talked up the legislation. But the language has escalated. In early February, he told Fox Business the goal was to "get some clarity" because markets had been "languishing" and "fled offshore." Now, he is using "on the cusp," a phrase that implies weeks, not months.
Why This Bill Matters More Than Any ETF Filing
The CLARITY Act (formally the Digital Asset Market Clarity Act of 2025, H.R. 3633) is the most consequential piece of crypto legislation since the Howey test started being applied to tokens. It answers the question that has paralyzed the industry: who regulates what?
Under the bill, the CFTC would gain exclusive jurisdiction over spot markets for digital commodities, including Bitcoin, Ethereum, Solana, and other tokens meeting the "digital commodity" definition. The SEC would retain authority over primary market offerings and any asset that qualifies as a security. Critically, the bill creates a pathway for tokens to "graduate" from security status to commodity status once their underlying network reaches sufficient decentralization.
The bill passed the House in July 2025 with bipartisan support, including 78 Democratic votes. The Senate Agriculture Committee advanced a companion version in January 2026. Treasury Secretary Scott Bessent set an informal March 1 deadline for industry stakeholders to resolve remaining disputes over stablecoin yield provisions. We covered the full mechanics in our CLARITY Act explainer.
The CFTC Is Not Waiting for Congress
What separates Selig's latest push from typical Washington posturing is the agency's parallel action. Even as he talks up the bill, Selig has directed CFTC staff to use existing regulatory authority immediately rather than waiting for legislation.
In January, Selig and SEC Chairman Paul Atkins jointly relaunched "Project Crypto," a cross-agency initiative to harmonize digital asset oversight. The agencies committed to advancing a shared crypto asset taxonomy, clarifying jurisdictional boundaries, and eliminating duplicative compliance requirements. Selig explicitly endorsed the view that "digital commodities, digital collectibles, and digital tools are not securities," aligning with the CLARITY Act's framework before it even passes.
Selig also launched the "Future-Proof" initiative, directing staff to conduct a comprehensive review of existing CFTC rules to determine which ones need updating for new asset classes. The initiative covers tokenized collateral, perpetual derivatives onshoring, safe harbors for software developers, event contracts rulemaking, and leveraged crypto trading rules.
The message is clear: the CFTC is building the regulatory infrastructure to absorb its expanded mandate whether Congress acts next month or next quarter.
What "Gold Standard" Actually Means for the Industry
Selig has repeatedly described the bill as making the United States the "gold standard" for crypto regulation. That phrase carries weight. A gold standard framework means other jurisdictions, including the EU under MiCA and Dubai under VARA, would benchmark against the U.S. model rather than the other way around.
For crypto companies, this has direct operational consequences. A clear CFTC/SEC split means exchanges, wallet providers, and card issuers can design compliance programs around defined categories rather than guessing which agency might come knocking. The safe harbors for software developers could protect builders working on self-custody wallets and decentralized applications from being treated as regulated intermediaries.
For users, the clearest impact is on token classification. If the CLARITY Act passes, holding Bitcoin, Ethereum, or Solana in a crypto card wallet or spending account would fall under commodity regulation, a less restrictive framework than securities law. That makes it simpler for card issuers to offer crypto-backed spending products without running afoul of SEC registration requirements.
The Stablecoin Yield Fight Is the Last Obstacle
The bill is not guaranteed. The main sticking point remains the stablecoin yield provisions. Banks have lobbied aggressively to prevent stablecoin issuers from offering yield to holders, arguing it would siphon deposits. Coinbase CEO Brian Armstrong publicly drew a red line on the issue, stating that any bill removing stablecoin yield is unacceptable to the industry.
The related GENIUS Act, which governs stablecoin reserve requirements, is advancing on a parallel track. Both bills need to resolve the yield question. Bessent's March 1 deadline for industry agreement on this point is rapidly approaching.
If the yield dispute drags past March, the window tightens. Legislative calendars fill up fast, and midterm positioning starts absorbing attention by summer. Selig's "on the cusp" language may be as much about pressuring holdouts as it is about reporting genuine progress.
What Crypto Holders and Card Users Should Watch
Three triggers will signal whether Selig's optimism is warranted:
Senate floor scheduling. The Senate Agriculture Committee has advanced its version. The next step is a floor vote. If Senate leadership schedules one before April, the bill is on track. If it gets pushed behind other priorities, the timeline slips.
Stablecoin yield resolution. Watch for a compromise between the banking lobby and crypto companies. Any deal that preserves some form of yield, even capped or tiered, would unblock the bill. A complete ban on stablecoin yield would send the crypto industry back to opposing the legislation.
CFTC budget and staffing. The CFTC is a relatively small agency. Taking on spot crypto commodity oversight would require significant new funding and hiring. Budget appropriation language in upcoming spending bills will indicate whether Congress is serious about giving the CFTC the resources to execute its expanded role.
For holders of assets like SOL, ETH, or BTC who spend through crypto cards, passage would mean their assets are formally classified as digital commodities. That classification provides legal certainty that did not exist during the Gensler era, when the SEC treated virtually every token as a potential security.
FAQ
What is the CLARITY Act? The Digital Asset Market Clarity Act (H.R. 3633) is a market structure bill that divides crypto oversight between the CFTC (digital commodities) and the SEC (securities). It passed the House in July 2025 and is moving through the Senate.
When could the CLARITY Act become law? CFTC Chair Selig says Congress is "on the cusp" and projects the bill could reach President Trump's desk within "the next couple of months," as of February 2026. Treasury Secretary Bessent set a March 1 informal deadline for remaining disputes.
How does the CLARITY Act affect crypto card users? If passed, major crypto assets like BTC, ETH, and SOL would be classified as digital commodities under CFTC jurisdiction. This creates clearer legal footing for card issuers to offer crypto-funded spending products without navigating SEC securities registration.
What is the CFTC's Future-Proof initiative? A comprehensive review of existing CFTC rules announced by Chair Selig. It covers tokenized collateral, perpetual derivatives, safe harbors for software developers, and leveraged crypto trading, preparing the agency for an expanded role under the CLARITY Act.
What could delay or block the bill? The main obstacle is the stablecoin yield provision. Banks want to prevent stablecoin issuers from offering yield to holders. Crypto companies, led by Coinbase, refuse to accept a bill without yield. This dispute must be resolved before the bill can advance.
Overview
CFTC Chairman Michael Selig's declaration that the CLARITY Act is "on the cusp" of passage marks the strongest signal yet from a sitting regulator that crypto market structure legislation is imminent. The bill would formally split oversight between the CFTC and SEC, classify major tokens as digital commodities, and create safe harbors for DeFi developers. Combined with the CFTC's parallel Future-Proof initiative and the joint Project Crypto effort with the SEC, the regulatory ground is shifting faster than at any point since the industry began lobbying for clarity. The stablecoin yield fight remains the last major hurdle, with a March 1 deadline looming for industry compromise.
Recommended Reading
- The CLARITY Act Explained: What It Does, Why It Stalled, and What Happens Next
- Coinbase CEO Draws Red Line on GENIUS Act as Banks Push to Kill Stablecoin Yield
- White House Crypto Adviser Tells Banks to Stop Fighting Stablecoin Yield and Start Competing
