The Commodity Futures Trading Commission (CFTC), which currently employs 556 staff, is set to oversee U.S. crypto spot markets under the newly proposed CLARITY Act. This legislation, recently marked up by the Senate Banking Committee, comes amid a 21% reduction in CFTC personnel, down from 708. The agency is tasked with developing a comprehensive regulatory framework for the rapidly growing crypto sector, which processed $18.6 trillion in global volume last year. However, experts highlight that the CFTC's ability to meet the ambitious timelines established by the Act—finalizing rules within 360 days and implementing a registration regime in 270 days—is questionable given its current staffing levels and budget constraints.

The CFTC's funding is set to be temporary, with Congress appropriating $365 million for fiscal 2026, compared to the SEC's budget of $2.1 billion. This raises concerns about the agency's ability to establish a permanent regulatory regime. The CFTC's Chairman, Michael Selig, is also facing challenges due to potential vacancies on the commission, which could centralize rulemaking authority and undermine the legitimacy of new regulations. As the industry braces for the implementation of CLARITY, there are fears that without adequate staffing and resources, firms may operate under uncertain provisional regulations, complicating compliance and strategic planning.