Key Points
- The CFTC established an Innovation Task Force dedicated to developing regulatory standards for cryptocurrency, artificial intelligence, and prediction markets
- Michael Passalacqua will head the new task force and collaborate with the CFTC’s Innovation Advisory Committee
- A Memorandum of Understanding between the SEC and CFTC establishes a framework for coordinated digital asset regulation
- New joint regulatory guidance clarified that most digital assets—including stablecoins and digital collectibles—fall outside securities classification
- The CLARITY Act faces continued delays in the Senate despite House approval
The United States Commodity Futures Trading Commission has established a specialized Innovation Task Force designed to develop comprehensive regulatory standards for cryptocurrency, artificial intelligence technologies, and prediction market platforms.
During remarks at Tuesday’s Digital Asset Summit held in New York City, CFTC Chairman Michael Selig unveiled the initiative. According to Selig, the task force will establish a dedicated channel between industry innovators and federal regulators.
“The idea is really to create a space where innovators and builders can come in and talk to the staff,” Selig said.
Leading the task force will be Michael Passalacqua, who serves as a senior adviser to Chairman Selig. Before joining the CFTC in January, Passalacqua specialized in cryptocurrency and blockchain matters at the international law firm Simpson Thacher & Bartlett.
The newly formed task force will coordinate efforts with the CFTC’s Innovation Advisory Committee, a body comprising over 30 industry leaders from organizations such as Kalshi and Nasdaq.
This development follows the SEC’s establishment of its own cryptocurrency-focused task force by more than a year, which was announced just one day following President Donald Trump’s inauguration.
Federal Agencies Forge Agreement on Digital Asset Oversight
Earlier in the month, the Securities and Exchange Commission and the Commodity Futures Trading Commission formalized a Memorandum of Understanding aimed at harmonizing their respective digital asset regulatory frameworks. This agreement seeks to eliminate the contradictory regulations that previously generated tension between the two federal agencies.
Last week, both agencies released joint regulatory guidance. This guidance explicitly stated that the majority of digital assets—encompassing stablecoins, digital commodities, and collectible tokens—do not qualify as securities.
The collaborative guidance introduced an official “token taxonomy” framework to facilitate digital asset classification. Additionally, it confirmed that cryptocurrency-related activities such as mining, staking, and airdrop distributions typically do not constitute securities transactions.
Through the MOU, the SEC and CFTC will synchronize efforts regarding information exchange, collaborative rulemaking, asset classification standards, clearing procedures, margin requirements, and trade documentation.
SEC Chairman Paul Atkins described the new framework as a “bridge” providing regulatory certainty while lawmakers develop comprehensive legislation.
A Joint Harmonization Initiative has also been established, with SEC representative Robert Teply and CFTC official Meghan Tente serving as co-leaders.
Comprehensive Digital Asset Legislation Faces Congressional Delays
Legislators have yet to enact comprehensive digital asset legislation. The market structure proposal known as the CLARITY Act secured House of Representatives approval in July 2025 but has encountered obstacles in the Senate.
Ongoing disputes concerning stablecoin yield mechanisms, ethical considerations, tokenized equity instruments, and related matters have impeded legislative advancement. The timeline for a complete Senate floor vote remains uncertain.
The CFTC is simultaneously expanding its regulatory jurisdiction over prediction market platforms. The agency has claimed authority over these markets despite resistance from certain states citing existing gambling regulations.
