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CFTC Unveils Innovation Task Force to Set Rules for Crypto, AI and Prediction Markets

The move signals regulators are building a de facto framework in the absence of new laws.

Overview

  • The CFTC launched the Innovation Task Force on Tuesday to draft clear rules for crypto assets, artificial intelligence tools, and event‑contract markets.
  • Senior adviser Michael J. Passalacqua will lead the group, which will coordinate with the SEC and the CFTC’s Innovation Advisory Committee.
  • The SEC and CFTC recently signed an agreement to align oversight and issued joint guidance that sets a token taxonomy and says most digital assets are not securities.
  • Prediction markets are a near‑term test as the CFTC opens rulemaking on event contracts and faces state actions against Kalshi in Arizona and Nevada.
  • With the CLARITY Act stalled in the Senate, the task force gives builders a direct line to staff and a clearer path to launch products in U.S. markets.