CFTC Forms New Advisory Panel to Guide Blockchain and AI Regulation
Commodity Futures Trading Commission Chairman Michael Selig launched the Innovation Advisory Committee to present experience on rising applied sciences reshaping monetary markets, marking his first main coverage initiative since taking control of the derivatives regulator last month.
The newly renamed panel replaces the previous Technology Advisory Committee and will embrace representatives from monetary establishments, regulatory our bodies, know-how suppliers, public curiosity teams, academia, and market infrastructure companies, with constitution members drawn from the CEO Innovation Council established by former Acting Chair Caroline Pham.
Selig is in search of further nominations by means of January 31 because the company prepares regulatory frameworks for synthetic intelligence, blockchain, and cloud computing purposes in commodity derivatives markets.
The chairman positioned the committee as central to growing what he referred to as “clear guidelines of the highway for the Golden Age of American Financial Markets,” whereas Congress prepares to finalize complete digital asset laws.
Selig Signals Innovation Focus Following Pham’s Digital Asset Legacy
The IAC launch comes as Selig inherits an company reworked by Pham’s aggressive modernization efforts throughout her tenure as performing chair.
Pham’s final year delivered regulatory breakthroughs, together with spot crypto buying and selling on CFTC-registered exchanges, approval of a digital asset markets pilot program accepting Bitcoin, Ether, and USDC as collateral, and no-action reduction for 4 prediction market operators.
She deployed the company’s first automated market surveillance system whereas granting regulatory reduction that unlocked tens of billions in capital for market members.
“A variety of novel applied sciences are enabling the creation of totally new merchandise, platforms, and companies and remodeling the monetary markets panorama,” Selig stated in asserting the committee.
“Innovators are harnessing applied sciences similar to synthetic intelligence, blockchain, and cloud computing to modernize legacy monetary programs and construct totally new ones.“
The committee’s constitution directs members to present recommendation on technological innovation’s industrial, financial, and sensible implications throughout monetary companies, derivatives, and commodity markets, whereas recommending acceptable know-how funding ranges to help the company’s surveillance and enforcement capabilities.
Selig’s appointment follows his Senate confirmation in December, after serving as chief counsel of the SEC’s Crypto Task Force and as a senior advisor to SEC Chairman Paul Atkins, the place he developed regulatory frameworks for digital asset securities markets and contributed to the President’s Working Group report on strengthening American management in digital monetary know-how.
His profession in non-public apply concerned advising derivatives shoppers and digital asset firms on regulatory issues at a serious legislation agency, offering him with direct publicity to the compliance challenges confronted by exchanges, buying and selling platforms, and institutional market members.
Committee Formation Occurs Amid Legislative Uncertainty on Crypto Markets
The advisory panel’s institution coincides with turbulent negotiations over Senate digital asset laws which have missed a number of deadlines all through 2025.
Senate Agriculture Committee Chairman John Boozman postponed a planned markup of the Digital Asset Market Clarity Act to late January, citing the necessity for extra time to finalize coverage particulars following weekend negotiations with Democratic lead Senator Cory Booker.
Traditional banking teams intensified lobbying to restrict stablecoin rewards past the GENIUS Act’s framework, with Coinbase threatening to withdraw help if negotiators insert restrictions past enhanced disclosure necessities.
Three Democratic senators demanded a full listening to earlier than Thursday’s markup, criticizing the shortage of textual content simply two days earlier than the vote on what they referred to as “probably the most vital legislation thought of by the committee this century.”
The laws impacts 68 million American crypto house owners and the $3 trillion digital asset market. However, TD Cowen recently warned that the 2026 midterm elections may delay passage till 2027, as Democrats could withhold help forward of the following electoral cycle.
Meanwhile, Senator Cynthia Lummis introduced standalone legislation to defend non-custodial blockchain builders from being categorized as cash transmitters, emphasizing that “code just isn’t custody” and that enforcement actions threat criminalizing open-source software program improvement.
For this new committee, Selig pledged to oversee “the soundness and safety of America’s commodity derivatives markets throughout this era of speedy transformation” whereas making certain improvements stay U.S.-based, stating, “Under my management, the CFTC will conquer these nice frontiers and make sure that the improvements of tomorrow are Made in America.“
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