CFTC Establishes Innovation Task Force, Focuses on Cryptocurrency, AI, and Prediction Markets

Odaily Planet Daily reports that Michael Selig, Chairman of the U.S. Commodity Futures Trading Commission (CFTC), announced the formation of the Innovation Task Force on Tuesday, focusing on cryptocurrencies, AI, and rapidly evolving prediction markets, and will promote rules related to new products and technologies. In a statement, Michael Selig said that establishing a clear regulatory framework for innovators developing at the forefront of new finance can promote responsible domestic innovation and prevent U.S. market participants from being marginalized.

Last year, the SEC established a cryptocurrency working group and held multiple roundtable discussions on topics such as DeFi and tokenization; over the past year, the SEC and CFTC have strengthened coordination, releasing interpretive guidance last week to clarify jurisdiction boundaries and noting that most cryptocurrencies do not qualify as securities. The CFTC has also increased its focus on prediction markets. Michael Selig emphasized the agency’s jurisdiction in this area and mentioned that some states oppose it based on local gambling laws, especially when linked to sports-related outcomes. (The Block)