Key Highlights
- CFTC establishes Innovation Task Force focused on developing regulatory standards for cryptocurrency, artificial intelligence, and prediction markets
- Michael Passalacqua appointed to head the new initiative, collaborating with CFTC’s Innovation Advisory Committee
- SEC and CFTC execute Memorandum of Understanding to harmonize digital asset regulation and eliminate regulatory overlap
- Collaborative regulatory guidance establishes that most digital assets—including stablecoins and collectibles—fall outside securities classification
- Senate progress on the CLARITY Act market structure legislation remains uncertain
The United States Commodity Futures Trading Commission has established a specialized Innovation Task Force aimed at developing comprehensive regulatory frameworks for cryptocurrency, artificial intelligence technologies, and prediction markets.
Michael Selig, CFTC Chair, revealed the initiative during his address at the Digital Asset Summit held in New York City on Tuesday. According to Selig, the task force represents a strategic effort to establish direct communication channels between industry innovators and regulatory authorities.
Under my leadership at the @CFTC, we’re committed to future-proofing regulation for the new frontier of finance. Today, I’m proud to announce the launch of our Innovation Task Force, which will build on our Innovation Advisory Committee work and establish clear rules of the road…
— Mike Selig (@ChairmanSelig) March 24, 2026
“The idea is really to create a space where innovators and builders can come in and talk to the staff,” Selig said.
The leadership of the task force has been assigned to Michael Passalacqua, who serves as a senior adviser to Selig. Prior to joining the CFTC in January, Passalacqua specialized in cryptocurrency and blockchain matters at the international law practice Simpson Thacher & Bartlett.
Collaboration between the task force and the CFTC’s Innovation Advisory Committee is planned, with the committee comprising over 30 industry leaders from organizations such as Kalshi and Nasdaq.
This CFTC initiative follows more than a year after the SEC established its own cryptocurrency task force, which was launched immediately following President Donald Trump’s inauguration.
Regulatory Agencies Formalize Coordination Framework
In recent weeks, the SEC and CFTC formalized a Memorandum of Understanding aimed at synchronizing their regulatory approaches to digital assets. This agreement seeks to eliminate the contradictory regulations that had previously caused tension between the regulatory bodies.
The agencies jointly published guidance last week clarifying that the majority of digital assets—encompassing stablecoins, digital commodities, and collectibles—do not qualify as securities.
This collaborative guidance introduced an official “token taxonomy” framework to assist in classifying digital assets. The guidance further established that cryptocurrency-related activities such as mining, staking, and airdrops typically do not constitute securities transactions.
The MOU establishes protocols for the SEC and CFTC to collaborate on information exchange, coordinated rulemaking, asset classification, clearing procedures, margin requirements, and trade reporting standards.
Paul Atkins, SEC Chair, characterized the framework as a “bridge” providing regulatory clarity during the period Congress develops more extensive legislation.
A Joint Harmonization Initiative has also been established, with Robert Teply representing the SEC and Meghan Tente representing the CFTC as co-leaders.
Legislative Efforts Face Congressional Delays
Comprehensive digital asset legislation has yet to receive Congressional approval. The CLARITY Act, a market structure bill addressing digital assets, successfully passed the House of Representatives in July 2025 but has encountered obstacles in the Senate.
Ongoing debates surrounding stablecoin yield mechanisms, ethical considerations, tokenized securities, and related matters have delayed legislative advancement. The timing and likelihood of a full Senate floor vote remain uncertain.
The CFTC has simultaneously expanded its regulatory authority over prediction markets. The agency has claimed jurisdiction over these platforms despite opposition from certain states invoking state-level gaming regulations.
