Key Highlights
- The CFTC established an Innovation Task Force to develop regulatory guidelines for cryptocurrencies, artificial intelligence, and prediction markets
- Michael Passalacqua will lead the initiative and collaborate with the CFTC’s Innovation Advisory Committee
- The SEC and CFTC executed a Memorandum of Understanding to harmonize digital asset supervision and eliminate regulatory inconsistencies
- Collaborative guidance clarified that most digital assets — including stablecoins and collectibles — fall outside securities classification
- The CLARITY Act, a comprehensive market structure bill, continues to face delays in the Senate
The US Commodity Futures Trading Commission has established an Innovation Task Force designed to develop comprehensive regulatory guidelines for cryptocurrency, artificial intelligence, and prediction markets.
CFTC Chair Michael Selig revealed the initiative during Tuesday’s Digital Asset Summit in New York City. He emphasized that the task force will establish direct communication channels between industry innovators and regulatory officials.
https://twitter.com/ChairmanSelig/status/2036434455166867811?s=20
“The idea is really to create a space where innovators and builders can come in and talk to the staff,” Selig said.
Michael Passalacqua, serving as a senior adviser to Selig, will oversee the task force. Before joining the CFTC in January, Passalacqua handled crypto and blockchain matters at international law firm Simpson Thacher & Bartlett.
The task force will collaborate with the CFTC’s Innovation Advisory Committee, which features over 30 executives representing companies such as Kalshi and Nasdaq.
The CFTC’s initiative arrives over a year following the SEC’s establishment of its own crypto task force, which launched one day after President Donald Trump assumed office.
Federal Regulators Execute Coordination Agreement
Earlier this month, the SEC and CFTC executed a Memorandum of Understanding aimed at harmonizing their digital asset regulatory strategies. The agreement seeks to eliminate the conflicting regulations that previously generated tension between the agencies.
The agencies published joint guidance last week. The guidance established that most digital assets — including stablecoins, digital commodities, and collectibles — do not qualify as securities.
The collaborative guidance introduced an official “token taxonomy” framework to assist in classifying digital assets. The guidance also confirmed that crypto operations like mining, staking, and airdrops typically do not constitute securities transactions.
The MOU establishes coordination between the SEC and CFTC regarding data sharing, collaborative rulemaking, product definitions, clearing procedures, margin requirements, and trade reporting.
SEC Chair Paul Atkins described the framework as a “bridge” providing clarity during the period while Congress develops comprehensive legislation.
A Joint Harmonization Initiative has also been established, with Robert Teply from the SEC and Meghan Tente from the CFTC serving as co-leaders.
Congressional Legislation Faces Continued Delays
Congress has yet to enact comprehensive digital asset legislation. The market structure bill, known as the CLARITY Act, received approval from the House of Representatives in July 2025 but has encountered obstacles in the Senate.
Discussions surrounding stablecoin yield, ethics considerations, tokenized equities, and related matters have delayed advancement. The timeline for a full Senate floor vote remains uncertain.
The CFTC has also expanded its supervision of prediction markets. The agency has claimed jurisdiction over these platforms despite objections from certain states referencing local gaming regulations.
