- CFTC forms task force to design rules for crypto, AI, and prediction markets in evolving derivatives sector.
- Initiative includes industry leaders and aligns with SEC to strengthen digital asset regulatory coordination.
- Agency reviews prediction markets amid legal scrutiny and stalled legislation, seeking public input on rules.
The Commodity Futures Trading Commission has launched a new Innovation Task Force to design regulatory frameworks for crypto, artificial intelligence, and prediction markets. Chairman Michael S. Selig announced the move recently in the United States. The initiative aims to guide innovation in derivatives markets while coordinating oversight with other federal agencies.
Task Force Focuses On Emerging Technologies
The CFTC said the task force will focus on three sectors. These include digital assets and blockchain systems, artificial intelligence, and prediction markets. According to Michael S. Selig, the goal is to establish clear rules for new financial technologies.
Notably, the task force will work alongside the Innovation Advisory Committee. This 35-member panel includes executives from Coinbase, Ripple, Uniswap Labs, Gemini, CME Group, and Nasdaq. The structure allows industry participants to contribute to regulatory discussions.
At the same time, Michael J. Passalacqua will lead the initiative. He joined the agency in January after working on crypto matters in private practice.
Coordination With SEC And Federal Agencies
The new unit will coordinate with other regulators, including the U.S. Securities and Exchange Commission. This follows recent efforts by both agencies to align on digital asset oversight. Earlier in March, the SEC classified 16 tokens, including Bitcoin and Ethereum, as digital commodities.
That move strengthened the CFTC’s role in supervising parts of the crypto market. Additionally, Selig previously served as chief counsel to the SEC’s Crypto Task Force. He later assumed leadership at the CFTC in December 2025.
Prediction Markets Draw Regulatory Attention
Alongside crypto and AI, the CFTC is reviewing prediction markets and event contracts. The agency has requested public input on whether new rules are necessary. This review comes as platforms face legal pressure in states such as Arizona and Nevada.
Concerns over market integrity and insider activity have also emerged. Meanwhile, the House-passed CLARITY Act remains stalled in the Senate. As a result, the CFTC’s initiative appears to address regulatory gaps through agency action.
