CFTC chair signals crypto regulations will advance without CLARITY Act

The stalled progress of the CLARITY Act in the US Senate has sparked renewed attention on how digital asset regulation may move forward. Financial strategist Levi, known for his market commentary, urged XRP holders not to lose sight of key regulatory developments taking place beyond Congress.

Regulators press ahead despite legislative gridlock

Levi said in a recent video that even as the CLARITY Act faces major hurdles, regulatory work is continuing. He emphasized that the bill’s delay in the Senate does not stop federal agencies from shaping the digital asset landscape within the authority they already possess.

Levi pointed to recent comments from Commodity Futures Trading Commission (CFTC) Chairman Michael Selig, who confirmed that the agency intends to continue developing a regulatory structure for cryptocurrencies without waiting for new laws. Selig, as head of the CFTC, oversees the regulation of US derivatives markets and is directly involved in how digital assets are treated under federal oversight.

Levi explained the significance of this approach for the wider crypto market, saying that investor uncertainty around regulations remains a major concern, especially for assets like XRP.

Levi stated that with the CLARITY Act facing delays in the Senate, CFTC Chairman Michael Selig has indicated the agency is advancing work on a digital asset regulatory framework using current authority.

Levi outlined the different roles played by Congress and regulatory agencies. While new legislation would require congressional approval, the CFTC and the Securities and Exchange Commission (SEC) are able to act independently within existing mandates. He noted that cooperation continues between these agencies on digital asset oversight, and this collaboration is expected to carry on regardless of legislative outcomes.

The CLARITY Act was designed to bring new guidelines for digital asset classification and compliance, but its failure to move forward has not stalled regulatory progress entirely. Levi suggested that ongoing inter-agency coordination is likely to shape the near-term regulatory landscape for the industry.

Mini dictionary: CLARITY Act – Proposed US legislation aimed at clarifying the legal and regulatory status of digital assets, particularly to define whether cryptocurrencies should be treated as securities or commodities.

XRP firmly under the spotlight

Levi linked the current regulatory environment to the outlook for XRP, highlighting that persistent regulatory ambiguity continues to weigh on the asset’s market perception. He argued that if the CFTC and other agencies make progress on a regulatory framework, XRP could become a focus for both retail and institutional investors looking for greater certainty.

“Now, even with Congress hitting a roadblock, the regulators are still moving,” Levi said, adding that the ongoing efforts by agencies could deliver incremental clarity for digital assets. He described the delay of the CLARITY Act as a setback, but not a full retreat from digital asset rulemaking in the US.

Levi indicated he will be closely monitoring developments affecting XRP, especially as the regulatory landscape is expected to evolve further regardless of the stalled legislation.

Levi’s comments are aimed at investors in XRP, a digital asset designed for fast cross-border payments on the XRP Ledger network. He encouraged holders to monitor regulatory trends beyond the fate of the CLARITY Act, as federal agencies like the CFTC and SEC could still drive significant policy changes affecting XRP’s market status.

While the regulatory outlook remains uncertain, Levi maintains that investors should closely track actions by federal agencies that may influence XRP and the broader crypto sector, regardless of legislative developments in Congress.