The U.S. Commodity Futures Trading Commission (CFTC) has announced the Innovation Advisory Committee (IAC), comprised of leaders from both crypto and traditional finance, to help the agency develop “fit-for-purpose” regulation and modernize its supervisory framework in the face of innovations such as blockchain and AI.
This move comes as the US pushes for “legal innovation” and XEM its regulatory approach, particularly with DeFi and prediction markets. The IAC is expected to help the CFTC make decisions that are more aligned with market realities and create clearer “rules of the game” for the next phase of development.
- The CFTC launched an IAC comprising crypto leaders, TradFi experts, and representatives from academic and interest groups to advise on policy.
- CFTC Chairman Mike Selig said the IAC will help “future-ize” the market and modernize regulations for innovation today and tomorrow.
- Uniswap and Chainlink leaders XEM this as a positive sign for Tokenize, DeFi , and crypto, a departure from their previous, more enforcement-oriented approach.
The CFTC established the Innovation Advisory Committee to lead market innovation.
The IAC is a new advisory group announced by the CFTC on February 13th, bringing together crypto and traditional finance leaders to assist the agency in developing flexible regulations that accurately reflect market realities and adapt to technologies such as blockchain and AI.
On February 13th, the CFTC announced the membership of the Innovation Advisory Committee (IAC), a group designed to support policy direction in the context of accelerating financial innovation. According to the announcement, the IAC includes representatives from not only businesses but also academics and interest groups to balance perspectives on technological updates and breakthroughs.
The panel of leaders from the cryptocurrency sector includes Brian Armstrong (Coinbase), Hayden Adams (Uniswap), Brad Garlinghouse (Ripple), Sergey Nazarov (Chainlink Labs), Anatoly Yakovenko (Solana), and others. In the prediction market, there are Shayne Coplan (Polymarket) and Tarek Mansour (Kalshi). Additionally, the CFTC has selected leaders from sports betting platforms such as FanDuel and DraftKings.
On the traditional financial side, the list includes Frank LaSalla (CEO of Depository Trust and Clearing Corporation, DTCC), David Schwimmer (CEO of London Stock Exchange), and Adena Friedman (CEO of Nasdaq), among others. This combination of members suggests that the CFTC wants a multi-faceted assessment of innovations that are directly impacting market structure.
The CFTC's goal is to "futurize" the market through adaptive regulation.
CFTC Chairman Mike Selig said the IAC will help the agency make decisions that are more aligned with market realities, modernize rules, and create a clear framework for the "rules of the game," in preparation for the next phase of innovation in the U.S. financial market.
In an official statement, Mike Selig described this as an “energetic moment” for regulators, emphasizing that the IAC would support the CFTC's decisions in reflecting “market realities.” He also stated that the goal was to help the CFTC “future-ize” the market and establish clear rules for what he called the “golden age” of the U.S. financial market.
According to Selig, the IAC will play a crucial Vai in helping the CFTC build regulations capable of adapting to new breakthroughs, particularly blockchain and AI, which are reshaping financial markets. The focus here is on modernizing the regulatory framework to keep pace with innovation “today and tomorrow,” rather than simply reacting after risks have arisen.
Details regarding the announcement of IAC membership were published by the CFTC in a CFTC press release .
“The IAC’s work will help ensure that the CFTC’s decisions reflect market realities, enabling the agency to ‘future-ize’ its markets and develop clear ‘rules of the game’ for the Golden Age of U.S. financial markets.”
– Mike Selig, Chairman of the CFTC, according to a CFTC press release.
“By bringing together stakeholders from every corner of the market, the IAC will be a great asset to the Commission as we modernize rules and regulations for the innovations of today and tomorrow.”
– Mike Selig, Chairman of the CFTC, according to a CFTC press release.
IAC could be a positive sign for DeFi, Tokenize , and crypto.
Many leaders in the crypto industry XEM the IAC as a turning point toward dialogue and “legitimate innovation,” potentially supporting DeFi, Tokenize , and the broader crypto market, rather than the previous approach which relied primarily on subpoenas and enforcement measures.
Notably, Selig signaled this move in late January when he called for “fit-for-purpose” regulation for new technologies that are disrupting the structure of financial markets. This was mentioned by the CFTC in a previous announcement .
The new update also comes at a sensitive time for the forecasting market. The regulator recently reversed a Biden administration-era rule that banned “event contracts” tied to sporting and political activities. Selig called this a commitment by the agency to “legitimate innovation,” highlighting the shift toward crypto-friendly and innovation-oriented practices under the Donald Trump administration; details can be found in the CFTC statement .
Responding to the IAC, Uniswap CEO Hayden Adams suggested that having more "builders" in the IAC is a good sign for the future of the regulatory body. His post appeared on Hayden Adams' X account .
“The CFTC under the previous administration only wanted to talk through subpoenas and enforcement measures. But this time, the IAC has a lot of people involved in its development! This is a great sign for the agency’s future.”
– Hayden Adams, CEO of Uniswap, quoted from a post on X
Sergey Nazarov (Chainlink Labs) also expressed a similar view, expecting this move to be a positive (bullish) signal for Tokenize, DeFi , and crypto in general. The response was posted on Sergey Nazarov's X account .
Conclusion: The CFTC aims for flexible regulation, prioritizing dialogue with the market.
The establishment of the IAC shows that the CFTC wants to build a broad advisory mechanism, ranging from crypto to TradFi and academia, to modernize regulation. With many "builders" involved, the crypto industry sees this as a positive sign and a shift from the previous phase , which focused more on enforcement measures.
- The CFTC established the IAC advisory group to assist in developing adaptive regulations.
- Crypto leaders view this as a positive sign and a departure from the more enforcement-oriented approach of the previous phase.
Frequently Asked Questions
What is CFTC's IAC?
The Innovation Advisory Committee (IAC) is an advisory group announced by the CFTC on February 13th, bringing together leaders in cryptocurrency, crypto, traditional finance, academics, and interest groups to advise on innovation and regulatory direction.
Who participates in the IAC?
Members include crypto leaders such as Brian Armstrong (Coinbase), Hayden Adams (Uniswap), Brad Garlinghouse (Ripple), Sergey Nazarov (Chainlink Labs), Anatoly Yakovenko (Solana); along with forecasting market representatives such as Shayne Coplan (Polymarket), Tarek Mansour (Kalshi) and many TradFi leaders from DTCC, London Stock Exchange, and Nasdaq.
What objectives does the CFTC aim to achieve by establishing the IAC?
According to CFTC Chairman Mike Selig, the IAC will help decisions reflect market realities, “futurize” the market, and modernize rules and establish clearer “rules of the game” for innovations such as blockchain and AI.
Why does the DeFi and crypto community see this as a positive sign?
Some industry leaders believe the IAC demonstrates the CFTC's willingness to engage in dialogue and build "fit-for-purpose" regulations, rather than primarily relying on subpoenas and enforcement measures. They expect this to benefit Tokenize, DeFi , and crypto more broadly.
