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If we look back at the last days of January, the Commodity Futures Trading Commission (CFTC)’s new Chairman, Michael Selig, said the commission will draft new rules for prediction markets.
Taking a step towards that goal, the CFTC just officially launched a brand new Innovation Advisory Committee (IAC), and the guest list is basically a Who’s Who of the tech and finance world. We are talking about 35 big shots, including the CEOs of DraftKings, Blockchain, and Coinbase and even the masterminds behind prediction markets like Polymarket, Robinhood, and Kalshi.
Selig, who obviously is the sponsor, nominated cryptocurrency lawyer Michael Passalacqua as the committee’s designated federal officer.
According to Selig, this group is the agency’s secret weapon for future-proofing the economy.
“Today marks an important and energizing moment at the CFTC as the Innovation Advisory Committee takes shape. The IAC will serve as an important resource for cutting-edge innovation in the derivatives and commodity markets. The committee will help the Commission keep pace with how breakthrough innovations, such as artificial intelligence and blockchain technologies, are transforming markets, enabling the agency to develop adaptive regulations and maintain robust financial oversight in a world where change is constant.”
What is the big plan?
Selig is clearly not interested in the old way of doing things. He rebranded the old Technology Advisory Committee into this new IAC to handle the “Golden Age of American Financial Markets.”
Instead of guessing how AI, blockchain, and prediction markets work, the regulators are bringing the experts directly to the table. They want to build a set of “rules of the road” that actually make sense for the 2026 tech terrain instead of stifling it with red tape.
“The IAC’s work will help ensure the CFTC’s decisions reflect market realities so the agency can future-proof its markets and develop clear rules of the road for the Golden Age of American Financial Markets,” Selig said.
“America is home to the most transparent and well-regulated financial markets in the world, but we cannot assume that this will always be the case. By bringing together participants from every corner of the marketplace, the IAC will be a major asset for the Commission as we work to modernize our rules and regulations for the innovations of today and tomorrow.”
Trading the boxing gloves for boardroom seats
These careful steps will allow the government to collaborate with event betting platforms and the crypto industry. For a long time, these industries felt like they were in a constant boxing match with the state government.
It’s fair to say this creation is timely because this month New York Attorney General Letitia James argued that these platforms are essentially unregulated gambling and leave consumers at major risk.
But with influential figures on the advisory board like Adena Friedman, Chair & CEO, Nasdaq; Tyler Winklevoss, CEO, Gemini; and Jeff Sprecher, CEO, Intercontinental Exchange, these markets will be seen as legitimate financial tools rather than just “backroom betting.”
