CFTC Establishes New Task Force to Regulate Crypto, AI, and Prediction Markets

Key Takeaways The CFTC established an Innovation Task Force focused on developing regulatory standards for cryptocurrency, artificial intelligence, and prediction markets Michael Passalacqua will serve as the head of this new initiative, collaborating with the CFTC’s Innovation Advisory Committee The SEC and CFTC executed a Memorandum of Understanding to synchronize digital asset regulation and eliminate regulatory inconsistencies Collaborative guidance determined that the majority of digital assets — such as stablecoins and digital collectibles — fall outside securities classification The CLARITY Act, designed to establish market structure, continues to face delays in Senate proceedings The United States Commodity Futures Trading Commission has established a dedicated Innovation Task Force aimed at developing comprehensive regulatory guidelines for cryptocurrency, artificial intelligence technologies, and prediction markets. CFTC Chairman Michael Selig revealed this initiative during his address at the Digital Asset Summit held in New York City this Tuesday. According to Selig, the task force will establish a direct communication channel between industry innovators and federal regulators. Under my leadership at the @CFTC, we’re committed to future-proofing regulation for the new frontier of finance. Today, I’m proud to announce the launch of our Innovation Task Force, which will build on our Innovation Advisory Committee work and establish clear rules of the road… — Mike Selig (@ChairmanSelig) March 24, 2026 “The concept centers on establishing an environment where innovators and developers can directly engage with regulatory staff,” Selig explained. The task force will operate under the leadership of Michael Passalacqua, who serves as a senior adviser to Chairman Selig. Prior to joining the CFTC in January, Passalacqua specialized in cryptocurrency and blockchain matters at the international law practice Simpson Thacher & Bartlett. This new unit will function i...