On Tuesday, Michael Selig, Chairman of the U.S. Commodity Futures Trading Commission (CFTC), announced the establishment of an Innovation Task Force focusing on cryptocurrencies, AI, and the rapidly growing prediction markets, and will advance regulations related to new products and technologies. In a statement, Selig said that by establishing a clear regulatory framework for innovators developing at the forefront of new finance, responsible domestic innovation can be fostered, and the marginalization of U.S. market participants can be prevented. The SEC established a cryptocurrency working group last year and held numerous roundtable discussions on topics such as DeFi and tokenization. The SEC and CFTC have strengthened coordination over the past year, and last week issued interpretative guidance to clarify jurisdictional boundaries, noting that most cryptocurrencies are not securities. The CFTC has also increased its focus on prediction markets. Selig emphasized the agency's jurisdiction in this area, mentioning that some states have objected based on their local betting laws (especially when linked to sports-related outcomes). (The Block)
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