CFTC Names Members of CEO Innovation Council to Guide Derivatives Market Structure

Highlights:

• CFTC has expanded its engagement as leaders from crypto and finance join talks on new market rules.
• The agency will advance new oversight work through the CEO Innovation Council as policy activity rises.
• The leadership shift moves forward as the CFTC accelerates action on tokenized trading models.

The US Commodity Futures Trading Commission expanded its engagement with the crypto sector after it named new industry leaders to support its work on market structure. The agency released the list on Wednesday and highlighted the growing need for direct dialogue with digital-asset firms.

JUST IN: 🇺🇸 CFTC unveils its first CEO Innovation Council with top exchange CEOs to shape the future of tokenization, crypto markets, 24/7 trading, perps, and prediction markets. pic.twitter.com/sgAKr2EpSO

— CryptoWhale (@CryptoWhale) December 11, 2025

The update confirmed that crypto executives will join counterparts from major exchanges that operate in traditional markets. The agency said the group will help shape oversight as new trading models gain traction across derivatives markets. The announcement followed a sharp rise in activity around tokenization and on-chain products.

The group includes CEOs from Polymarket, Kalshi, Kraken, Gemini, Bitnomial, Crypto.com, and Bullish. Their participation signals stronger interaction between crypto platforms and federal market regulators. The CFTC also invited leaders from CME Group, Cboe Global Markets, Nasdaq, Intercontinental Exchange, and the London Stock Exchange Group. These institutions handle large volumes of derivatives activity each day. The combined group will examine topics such as tokenization, 24/7 trading, perpetual contracts, and blockchain settlement tools.

Pham said she wants open dialogue as market infrastructure evolves. She added that firms are now exploring on-chain settlement, prediction markets, and new collateral models. She also noted that the agency needs strong technical input while it responds to rising interest in digital-asset derivatives. Her remarks came at a time of rapid change inside the agency.

CEO Innovation Council Plays Central Role as CFTC Advances Crypto Collateral Pilot

The agency expanded its policy push with a pilot for crypto collateral in regulated derivatives markets. The program allows futures commission merchants to accept Bitcoin, Ether, and USDC as margin. Margin acts as a financial safeguard during trading, and the update introduces digital assets into that process. Pham said the program includes strict reporting rules and weekly disclosures. She added that the rules protect customer assets and support compliance.

I’m launching a digital assets pilot program for BTC, ETH and USDC that will protect Americans under U.S. rules when you use @CFTC brokers to keep your crypto safe. Our new guidance will enable tokenized markets, and we’re cutting red tape that is outdated. Onwards!…

— Caroline D. Pham (@CarolineDPham) December 8, 2025

The agency also published new guidance on tokenized assets. The guidance addresses tokenized US Treasurys, tokenized money market funds, and other on-chain instruments that could be listed in futures or swaps markets. It specifies the segregation, control, and legally binding requirements. These steps will help institutions understand how to treat tokenized collateral under federal rules. Pham said the changes open the room for more digital assets in the future.

The agency also withdrew Staff Advisory 20-34 after the release of the guidance. That document limited the ability of firms to accept crypto collateral. Pham said the advisory no longer matched the current market environment. The change followed updates linked to the GENIUS Act. Industry executives welcomed the decision.

Coinbase legal chief Paul Grewal praised the withdrawal and said the update supports innovation. Salman Banaei from Plume Network said the pilot supports broader adoption of on-chain infrastructure.

Today’s no-action relief from @CFTC unlocks the use of digital assets as collateral in derivatives markets. Staff Advisory 20-34 was a concrete ceiling on innovation. It relied on outdated info, went well beyond the bounds of regulation and frustrated the goals of the PWG. Thank…

— paulgrewal.eth (@iampaulgrewal) December 8, 2025

Leadership Transition Looms as New Chair Prepares to Inherit Expanding Crypto Agenda

The CEO Innovation Council comes when the agency is about to have new leadership. President Trump has nominated Mike Selig to the top position, and the legislature anticipates a swift confirmation. Pham has affirmed that the US should establish itself in digital finance to be ahead of other countries in adoption. The incoming chair will pick up on active projects that will align on-chain markets with derivatives oversight.

I am honored to be nominated by President Trump to serve as the 16th Chairman of the U.S. Commodity Futures Trading Commission. With the President’s leadership, a Great Golden Age for America’s Financial Markets and a Wealth of New Opportunities stand before us. I pledge to work… https://t.co/cO2vLBAv0z

— Mike Selig (@MikeSeligEsq) October 25, 2025