The Commodity Futures Trading Commission has formed a new task force to oversee crypto, artificial intelligence, and prediction markets. The move signals deeper coordination across U.S. regulators as digital asset oversight expands.
CFTC Chair Michael Selig announced the Innovation Task Force on Tuesday, positioning it to shape rules for emerging financial technologies. The group will be led by senior advisor Michael J. Passalacqua and will coordinate with other federal agencies, including the Securities and Exchange Commission. Selig said the initiative aims to create clearer pathways for firms building new financial products.
Will Regulatory Coordination Accelerate Crypto Market Structure?
The task force arrives amid closer alignment between the CFTC and SEC on digital asset oversight. Last week, both agencies issued guidance clarifying jurisdictional boundaries, noting that most cryptocurrencies do not fall under securities classification. The SEC has already established its own crypto task force, which has hosted discussions on decentralized finance and tokenization.
The CFTC is also increasing its focus on prediction markets, an area drawing regulatory scrutiny. These platforms allow users to trade on event outcomes, but face legal challenges at the state level, particularly when tied to sports-related contracts. Despite opposition, Selig has maintained that such markets fall within the agency’s remit.
“By establishing a clear regulatory framework for innovators building on the new frontier of finance, we can foster responsible innovation at home,” Selig said in a statement.
He added that engagement between regulators and builders is central to the task force’s mandate.
The initiative will also work alongside the CFTC’s innovation advisory committee, formed in February and comprising more than 30 industry executives, including leaders from Kalshi and Nasdaq. The combined structure reflects a more structured approach to policy development through industry input.
The formation of the task force places the CFTC more directly at the center of emerging technology oversight. The next catalyst will be proposed rulemaking or pilot programs that define how crypto, AI-driven finance, and prediction markets operate under U.S. regulatory frameworks.
