US regulators are stepping up their digital asset agenda, with the new cftc innovation task force emerging alongside closer SEC-CFTC coordination on crypto oversight.
CFTC launches new task force for crypto, AI and prediction markets
The US Commodity Futures Trading Commission has unveiled an Innovation Task Force to craft clearer rules for crypto assets, artificial intelligence tools, and prediction markets. Announced by CFTC Chair Michael Selig at the Digital Asset Summit in New York City on Tuesday, the initiative is meant to give builders a more direct channel to regulators.
Selig said the group is designed to create a space where innovators can walk regulators through emerging technologies. However, he stressed that engagement with the task force will not replace compliance with existing law but should make expectations more transparent for the industry.
Michael Passalacqua, a senior adviser to Selig, will lead the task force. Passalacqua joined the CFTC in January after working on crypto and blockchain mandates at international law firm Simpson Thacher & Bartlett. Moreover, his background in private practice is expected to shape how the agency approaches complex market structure questions.
The new unit will work alongside the CFTC’s Innovation Advisory Committee, which counts more than 30 executives from firms such as Kalshi and Nasdaq. That said, the task force is expected to focus more on policy design and practical implementation than on high-level discussion.
The launch of the cftc innovation task force comes more than a year after the SEC created its own crypto-focused group, one day after President Donald Trump took office. The parallel initiatives underscore how US market regulators are competing to define the contours of digital asset oversight.
SEC and CFTC sign memorandum to align digital asset rules
Earlier this month, the SEC and the CFTC signed a Memorandum of Understanding (MOU) aimed at aligning their approaches to digital asset regulation. The agreement seeks to reduce conflicting rules that had previously created friction and regulatory uncertainty between the two agencies.
As part of the accord, the agencies also issued joint guidance last week stating that most digital assets are not securities. The statement explicitly covers stablecoins, digital commodities, and collectibles, which will generally fall outside securities law, even as other rules could still apply.
The joint statement also introduced a formal token taxonomy to help classify digital assets. It clarified that activities such as mining, staking, and airdrops generally do not qualify as securities transactions. However, it left open the possibility that specific fact patterns could trigger securities analysis under existing tests.
Under the MOU, the SEC and CFTC will coordinate on data sharing, joint rulemaking, product definitions, clearing, margin, and trade reporting. Moreover, the two agencies will seek to harmonize how they supervise intermediaries that operate across both derivatives and spot digital asset markets.
SEC Chair Paul Atkins described the framework as a regulatory “bridge” meant to provide clarity while Congress works on broader digital asset legislation. A Joint Harmonization Initiative was also launched, co-led by Robert Teply from the SEC and Meghan Tente from the CFTC, to implement the MOU in practice.
Congressional market structure bill remains stuck
Despite the regulatory coordination, Congress has not yet passed comprehensive digital asset law. The main market structure legislation, known as the CLARITY Act, cleared the House of Representatives in July 2025 but has since stalled in the Senate.
Debates over issues including stablecoin yield, ethics rules, tokenized equities, and other structural questions have slowed progress. However, lawmakers have signaled that any final bill will likely need to reconcile concerns about investor protection, innovation, and jurisdictional boundaries between the SEC and CFTC.
It remains uncertain when, or even if, the CLARITY Act will reach a full Senate floor vote. Moreover, the longer the bill remains stuck, the more weight falls on agency-level measures like the SEC-CFTC MOU and internal task forces to provide interim guidance for the market.
Prediction markets and expanding CFTC oversight
The CFTC is also stepping up oversight of prediction markets. The agency has asserted authority over these platforms even as some US states push back, citing potential conflicts with local gaming and gambling laws.
According to the CFTC, such markets often involve contracts that resemble derivatives, which fall squarely within its remit. That said, industry participants argue that event contracts can serve valuable hedging and information functions, and they want clearer rules to avoid enforcement-by-surprise.
Against this backdrop, the Innovation Task Force is expected to play a central role in shaping future standards for crypto, AI tools, and event contracts. Moreover, its work will likely influence how token classification, trading venues, and risk management are treated while Congress continues to debate a permanent framework.
In summary, the combination of the new CFTC task force, the SEC-CFTC memorandum, and stalled market structure legislation highlights a regulatory landscape in transition, with agencies moving ahead even as lawmakers deliberate longer-term digital asset policy.