CFTC Unveils Innovation Advisory Committee to Shape Blockchain and AI Regulation

Highlights:

• CFTC has unveiled a new innovation committee to guide crypto AI and modern financial market regulation.
• Crypto and exchange CEOs will advise regulators on real market risks and technology-driven change.
• Lawmakers are increasing pressure as prediction markets and digital asset oversight face closer review.

CFTC Chair Mike Selig announced an Innovation Advisory Committee on Monday during a public statement. The agency replaced its former Technology Advisory Committee with this new structure. Selig said the change reflects faster adoption of emerging technologies across financial markets. He stressed the need for rules that reflect real market use cases.

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CFTC CHAIR MICHAEL SELIG LAUNCHES INNOVATION ADVISORY COMMITTEE FOR AI AND BLOCKCHAIN

Michael Selig has launched the Innovation Advisory Committee at the Commodity Futures Trading Commission, renaming the former Technology Advisory Committee to focus on developing fit for… pic.twitter.com/6zXq0UtpZu

— Crypto Town Hall (@Crypto_TownHall) January 13, 2026

The new committee will advise the CFTC on the commercial and economic impacts of new financial technologies. It will also focus on practical business models shaping modern derivatives and commodity markets. Selig said the goal centers on creating clear rules that support innovation while protecting market integrity. He described the effort as essential for modern market oversight.

Selig emphasized the role that blockchain plays in accelerating and streamlining transactions in ever-open markets. He added that artificial intelligence enhances trading analysis and risk management. Cloud computing is also increasingly being used to modernize traditional financial systems. Collectively, these instruments are still transforming the way markets work.

In the meantime, the CFTC is establishing itself as a technology-conscious regulator. The agency has already permitted exchanges to list approved spot crypto products. This action indicates an increasing trust in the digital asset market infrastructure.

CFTC Unveils Industry-Led Advisory Panel With Crypto and Exchange CEOs

Selig plans to sponsor the committee and nominate CEO Innovation Council members as charter participants. The council includes several senior crypto executives with direct market experience. These include leaders from Gemini, Polymarket, Kalshi, Crypto.com, and Kraken. Their inclusion brings active market insight into regulatory discussions.

Innovators are harnessing technologies such as artificial intelligence, blockchain, and cloud computing to modernize legacy financial systems and build entirely new ones. Under my leadership, the Commission will develop fit-for-purpose market structure regulations for this new… https://t.co/puzntxnkvf

— Mike Selig (@MichaelSelig) January 12, 2026

Senior executives of traditional financial institutions are also represented on this panel. The Nasdaq Intercontinental Exchange and the Cboe Global Markets leaders will be involved. According to Selig, industry participation would enable the agency to learn about changing market realities. He emphasized that regulators should listen to builders and operators. The committee will give structured advice rather than informal consultations.

The CFTC also opened nominations for additional committee members. Applications remain open until January 31. The agency said it is welcoming views from academia, regulators, and public interest groups. This approach aims to broaden the policy conversation beyond industry voices.

Selig said the committee will deliver formal recommendations to the Commission. These will focus on technology impacts across derivatives, financial services, and commodity markets. The agency plans to use this input to guide future rulemaking.

Policy Pressure Builds Around Digital Assets and Prediction Markets

Selig’s move comes as Congress debates legislation that could expand CFTC authority over digital assets. Lawmakers are assessing which agency should oversee crypto markets under the Crypto Market Structure Bill. The bill will define clear roles for the CFTC and the SEC.

Prediction markets have also drawn increased attention from lawmakers and regulators. Representative Ritchie Torres recently introduced a bill targeting insider trading and politically linked wagers. The proposal aims to block elected officials from placing political bets.

NEW — RITCHIE TORRES (D-N.Y.) will introduce a bill on this.

Bill will be called the Public Integrity in Financial Prediction Markets Act of 2026

Description, per a source:

This bill prohibits federal elected officials, political appointees, and Executive Branch employees… https://t.co/eZZ9BmAMgJ

— Jake Sherman (@JakeSherman) January 3, 2026

The former CFTC leadership previously warned about election-related contracts. Officials argued that states should oversee election betting instead of federal regulators. Despite concerns, the agency has approved several prediction market platforms.

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