- The CFTC unveiled an Innovation Task Force covering crypto, AI, and prediction markets at the Digital Asset Summit in New York on March 24.
- Senior adviser Michael J. Passalacqua will lead the task force, which coordinates with an Innovation Advisory Committee of 35 members including Coinbase, Ripple, and Uniswap CEOs.
- The initiative follows a March 12 SEC-CFTC memorandum of understanding and arrives as the CLARITY Act stalls in the Senate.
Chairman Michael S. Selig said the CFTC is setting up an Innovation Task Force covering three areas: digital assets and blockchain, artificial intelligence (AI) and autonomous systems, and prediction markets.
The new unit will be led by senior adviser Michael J. Passalacqua, who joined the agency in January after working on crypto and blockchain matters in private practice.
The task force arrives just weeks after the SEC and CFTC agreed to coordinate more closely on digital asset oversight, as Crypto News Australia reported. That process moved further on March 17, when the SEC said 16 major tokens, including Bitcoin, Ethereum and Solana, should be treated as digital commodities, reinforcing the CFTC’s claim to a larger share of crypto supervision.
Selig previously served as chief counsel to the SEC’s Crypto Task Force before taking over at the CFTC in December 2025.
The task force will also work alongside the CFTC’s Innovation Advisory Committee, a 35-member panel created in January. Its members include top executives from Coinbase, Ripple, Uniswap Labs, Gemini, CME Group and Nasdaq.
That lineup gives major crypto and market infrastructure firms a formal voice in discussions around the rules that could govern their businesses, raising questions about how independent the process will be.
Related: Bitcoin’s ‘Muted’ Cycle: Why US$100K Became the Turning Point
Prediction Markets Also in Focus
The CFTC is separately seeking public input on whether new rules are needed for prediction markets and event contracts.
The review comes as platforms face legal pressure in states including Arizona and Nevada, and as concerns persist over market integrity and possible insider trading in event-based products. With the House-passed CLARITY Act stalled in the Senate, the agency’s move looks like an attempt to fill the gap through executive action.
Related: USR Stablecoin Crashes After Exploit as Millions in Unbacked Tokens Flood Market
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