Commodity Futures Trading Commission (CFTC) Chairman Michael Selig said the agency is prepared to use its existing authority to establish a regulatory framework for crypto markets if Congress fails to pass the Digital Asset Market Clarity (CLARITY) Act.

Speaking at the agency’s inaugural Innovation Advisory Committee meeting on Thursday, Selig shared that he directed CFTC staff to begin developing rules for crypto asset markets while lawmakers continue to debate the legislation.

The CFTC Chair stated that the agency would give Congress time to advance the CLARITY Act but could move independently if the legislation remains stalled.

“We’re going to give CLARITY its breathing room for a vote, but if the Democrats cannot support a…