The U.S. Commodity Futures Trading Commission 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 an interview with Fox Business, Selig urged lawmakers to advance the crypto market structure bill, which would divide oversight of digital assets between the CFTC and the Securities and Exchange Commission. 

The House passed the legislation in July 2025, while the Senate continues negotiating its version ahead of a potential floor vote. The Senate Banking Committee advanced the measure on May 14, with two Democrats joining Republicans.

"We're so close. We have to get this done," Selig said. "Otherwise, you end up with regulators like me writing all the rules."

Selig stated that the ongoing absence of a unified framework has left the industry operating under a “patchwork of state laws and regulations” he described as “really bad for business,” and called 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 this real opportunity to have a bipartisan bill."

Meanwhile, Senate Digital Asset Subcommittee Chair Cynthia Lummis, who appeared on Fox Business before Selig, said lawmakers have been negotiating the Clarity Act since last Labor Day. She said discussions have focused on issues including decentralized finance, illicit finance provisions, and ethics rules, after earlier negotiations over stablecoin provisions sought by banks.

Lummis said lawmakers had aimed to release legislative text around the July 4 holiday before moving the bill forward this month.

The comments come as analysts have lowered their expectations for the bill’s passage timeline. Galaxy Research cut its estimate for Clarity Act passage in 2026 to 50% from 60% in June, citing Senate calendar constraints and a lack of progress in negotiations, while TD Cowen said passage before the November midterm election remains “far from assured” due to unresolved political and policy issues.

Law enforcement groups also raised concerns over Section 604 of the bill, known as the Blockchain Regulatory Certainty Act, arguing that protections for non-custodial developers could create oversight gaps and complicate investigations into illicit finance.