CFTC Launches Innovation Task Force for Crypto, AI, and Prediction Markets

Highlights:

• The new Innovation Task Force targets crypto, AI, and prediction markets.
• The SEC and CFTC now show a more coordinated approach to digital asset oversight.
• Prediction markets have become a central issue in the federal regulatory debate.

The Commodity Futures Trading Commission has launched a new policy unit for fast-changing financial technology. On Tuesday, Chairman Michael S. Selig introduced the Innovation Task Force with a broad mandate. He said the group will shape clearer rules for new products across U.S. derivatives markets.

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Federal Regulators Move Closer on Digital Asset Policy

The task force will focus on crypto assets, blockchain systems, artificial intelligence, and autonomous tools. It will also cover prediction markets and event contracts, which now draw sharper legal scrutiny. Therefore, the agency wants a clearer path for firms entering contested sectors. Selig said stronger guidance can support responsible growth and keep American firms competitive.

Meanwhile, the new team will work beside the CFTC’s Innovation Advisory Committee. The committee launched in February and includes more than 30 industry leaders. Members include Kalshi chief executive Tarek Mansour and Nasdaq chief executive Adena Friedman. Together, both groups will give the commission wider market feedback and faster policy coordination.

Michael J. Passalacqua, who serves as a senior adviser to Selig, will lead the effort. On X, Passalacqua noted that the group will advance the chairman’s innovation agenda. He also added that clearer standards will help builders keep the next phase of finance in America.

Excited to lead the new @CFTC Innovation Task Force.

Under @ChairmanSelig, the ITF will provide clarity to builders by advancing the @CFTC’s innovation agenda across crypto, AI, & PMs.

Clear rules of the road will ensure the new frontier of finance is built in the US 🇺🇸 https://t.co/Dipu0lcMaI

— Michael Passalacqua (@passalacqua_mj) March 24, 2026

Prediction Markets Keep Rising on the Policy Agenda

The CFTC highlighted prediction markets, particularly as the debate on event contracts continues to expand. Recently, those platforms have expanded to sports-linked markets and other headline-driven products. However, there are still multiple states claiming that certain offerings conflict with local gaming regulations.

The agency also wants direct contact with the companies developing new products. At the Digital Asset Summit in New York, Selig stated that innovators need room to engage staff. This strategy implies that the CFTC is interested in earlier discussions rather than later enforcement battles. The Innovation Task Force could thus serve as a point of first call for builders seeking guidance.

This launch also marks a broader shift in Washington’s tone toward emerging finance. Over the years, companies have been exposed to overlapping signals between agencies that had varying legal priorities. Currently, regulators seem to be more inclined to establish limits before disputes escalate. This shift could matter most for prediction platforms and crypto firms crossing several legal categories.

New Policy Steps Aim to Calm Market Uncertainty

The task force arrives as the CFTC and SEC move closer on crypto oversight. Earlier this month, both agencies announced a memorandum of understanding on digital assets. The agreement aims to reduce conflicting rules and improve coordination across emerging technologies, marking a break from years of regulatory tensions.

🚨BREAKING: US SEC AND CFTC SIGN MOU TO COORDINATE CRYPTO REGULATION

The U.S. Securities and Exchange Commission and Commodity Futures Trading Commission have signed a Memorandum of Understanding to coordinate crypto regulation.

The agreement aims to improve cooperation between… pic.twitter.com/N28Pvo6cnE

— BSCN (@BSCNews) March 12, 2026

Last week, both agencies added detail through joint interpretive guidance. They said most digital assets do not qualify as securities under current federal standards. The guidance introduced a token taxonomy for digital commodities, collectibles, tools, stablecoins, and digital securities. It also addressed mining, staking, airdrops, and wrapped assets.

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