The Ustates Commodity Futures Trading Commission (CFTC) has enlisted leaders from prediction markets, cryptocurrency enterprises, and significant financial exchanges for a new 35-member Innovation Advisory Committee, indicating a potential shift towards a more welcoming federal perspective on novel trading products amidst ongoing legal evaluations.
This committee features prominent members from prediction markets such as Polymarket and Kalshi, alongside executives from prominent sportsbooks and crypto companies, as confirmed in a statement from the regulator.
Notable individuals include Polymarket CEO Shayne Coplan, Kalshi CEO Tarek Mansour, Jason Robins of DraftKings, and Christian Genetski of FanDuel, highlighting the increasing convergence between sports wagering and event-driven contracts.
Additionally, the committee comprises executives from leading financial market providers and tech firms, including Adena Friedman, Chair and CEO of Nasdaq, along with representatives from Intercontinental Exchange, CME Group, and Cboe Global Markets.
“Today marks a significant and dynamic moment for the CFTC as the Innovation Advisory Committee is formed,” commented CFTC chair Michael Selig. “The IAC’s initiatives will guide the CFTC’s decisions to reflect market realities, enabling the agency to anticipate future market trends and establish explicit frameworks for the Golden Age of American Financial Markets.”
The newly formed committee, which commenced in January and replaces the CFTC’s Technology Advisory Committee, is designed to provide guidance as innovations like artificial intelligence and blockchain progressively reshape derivatives and financial markets.
“The U.S. is home to the most transparent and effectively regulated financial markets globally, but we must not take this for granted,” Selig stated. “By gathering participants from all facets of the marketplace, the IAC will be an invaluable resource for the Commission in our efforts to modernize regulations for today’s and tomorrow’s innovations.”
Crypto industry leaders constitute the majority of the committee. Of the 35 members, approximately 20 are affiliated with cryptocurrency-related firms, including Brian Armstrong of Coinbase, Brad Garlinghouse of Ripple, Tyler Winklevoss of Gemini, and Kris Marszalek of Crypto.com.
The inclusion of at least five leaders from prediction markets comes as these products encounter increasing scrutiny at the state level. Earlier this month, New York Attorney General Letitia James remarked that prediction markets facilitate “unregulated gambling” and pose considerable risk to consumers.
The committee’s role will be to inform the CFTC on the commercial, economic, and operational effects of new products, trading platforms, and business models within the financial markets.