U.S. CFTC launches Innovation Advisory Committee, begins setting regulatory direction for prediction markets and crypto assets

The U.S. Commodity Futures Trading Commission (CFTC) has launched a dedicated advisory body to establish its regulatory approach to emerging financial technologies, including prediction markets and virtual assets (cryptocurrencies).

According to The Block on the 13th (local time), CFTC Chairman Michael Selig said his first step after taking office would be to overhaul the existing Technology Advisory Committee into the “Innovation Advisory Committee.” The aim is to flesh out the regulatory approach for areas such as prediction markets and virtual assets.

In a statement, Selig said he plans to designate the CEO Innovation Council as a charter member of the advisory body. The CEO Innovation Council was launched by former Acting CFTC Chair Caroline Pham and brings together key figures spanning prediction markets, digital assets, and traditional finance. Members include Polymarket CEO Shane Coplan, Kalshi CEO Tarek Mansour, Gemini co-founder Tyler Winklevoss, and Nasdaq Chair and CEO Adena Friedman.

Selig said, “Innovators are using technologies such as artificial intelligence, blockchain, and cloud computing to modernize the existing financial system and build entirely new markets,” adding, “The committee will work to develop market-structure regulations suited to these new domains of finance.”

The move aligns with the CFTC’s push to expand its role amid an ongoing tussle over regulatory leadership around prediction markets and virtual assets. In Congress, discussions are under way on legislation to broaden the CFTC’s jurisdiction over virtual assets, and the agency has been bolstering its presence—for example, by allowing, late last year, the first exchange listing of a spot virtual-asset product that received regulatory approval.

The market is interpreting the launch of the Innovation Advisory Committee as a signal that the regulatory framework for prediction markets and virtual assets more broadly will be clarified going forward. With key industry figures participating directly in the advisory body, attention is focused on the likelihood that on-the-ground perspectives will be reflected in regulatory discussions.