The Commodity Futures Trading Commission (CFTC) has launched an Innovation Task Force aimed at developing regulatory clarity for emerging technologies within US derivatives markets, including prediction markets and event contracts.
The task force will operate in partnership with the CFTC’s Innovation Advisory Committee and is expected to contribute to the Commission’s broader innovation agenda. Its remit includes oversight considerations for crypto assets and blockchain technologies, artificial intelligence and autonomous systems, and prediction markets.
CFTC Chairman Michael S Selig said: “By establishing a clear regulatory framework for innovators building on the new frontier of finance, we can foster responsible innovation at home and ensure American market participants are not left on the sidelines.”
The regulator stated that the initiative will work closely with other federal bodies, including the US Securities and Exchange Commission (SEC) and its Crypto Task Force, to align approaches to emerging financial products and technologies.
The creation of the task force comes as regulators continue to assess the growth of prediction markets and event-based contracts, which have drawn increasing attention from both financial and gambling regulators due to their structural similarities to betting products.
Michael J Passalacqua, senior advisor to the Chairman, has been appointed to lead the Innovation Task Force. The group will coordinate internal and external stakeholders as it develops policy recommendations and regulatory approaches.
The CFTC has indicated that the task force will play a role in shaping future rulemaking and guidance, particularly in areas where technological developments have outpaced existing regulatory frameworks.
Prediction markets have become a focal point for the regulator in recent months, as questions persist over their classification and oversight within US financial markets.
The launch follows increased coordination between US regulators. In March 2026, the CFTC and the SEC signed an agreement to improve regulatory alignment across financial markets, including joint efforts to address emerging sectors such as cryptocurrency and prediction markets.
The CFTC has recently signalled support for prediction markets in public statements addressing regulatory oversight in the sector
