TLDRThe CFTC has launched an Innovation Task Force to oversee crypto, artificial intelligence, and prediction markets.CFTC Chair Michael Selig announced the new initiative at the Digital Asset Summit in New York City.Michael J. Passalacqua will lead the task force as part of the agency’s regulatory efforts.The task force will coordinate with the Securities and Exchange Commission and its crypto unit.The SEC and CFTC recently issued joint guidance to clarify jurisdiction over digital assets.The Commodity Futures Trading Commission (CFTC) has created an Innovation Task Force to oversee crypto, artificial intelligence, and prediction markets. Chair Michael Selig announced the initiative on Tuesday at the Digital Asset Summit in New York City. He said the group will draft clear rules and coordinate with federal agencies to guide emerging financial products.CFTC Sets Framework for Crypto and Artificial Intelligence OversightCFTC Chair Michael Selig introduced the Innovation Task Force to advance regulatory clarity for digital assets and artificial intelligence tools. He said the agency will use the group to support responsible product development and structured market growth.Selig stated, “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.”He said the task force will give innovators direct access to agency staff for structured discussions and policy feedback.Selig told attendees, “The idea behind our innovation task force is to really create a space where innovators and builders can come in and talk with the staff.” The agency confirmed that Michael J. Passalacqua, a senior advisor to Selig, will lead the new group and oversee its operations.The task force will coordinate with the Securities and Exchange Commission and its existing crypto task force. The SEC formed its crypto task force last year and held roundtables on DeFi and tokenization topics. Both agencies issued joint interpretive guidance last week to clarify jurisdictional boundaries and confirm that most cryptocurrencies are not securities.Interagency Coordination and Focus on Prediction MarketsSelig said the Innovation Task Force will also work with the CFTC’s innovation advisory committee, created in February. The advisory committee includes more than 30 executives from financial and technology firms. Members include Kalshi CEO Tarek Mansour and Nasdaq CEO Adena Friedman, according to agency records.The CFTC has increased oversight of prediction markets over the past year and asserted its jurisdiction in this sector. Selig has stated that the agency regulates derivatives linked to future events, including sports outcomes. Several states have opposed certain platforms, arguing that sports-related contracts may conflict with local gaming laws.The agencies have aligned their regulatory stance through joint statements and coordinated guidance over the past year. Last week’s interpretive release outlined how each agency determines whether a digital asset falls under securities or commodities law. The CFTC said the Innovation Task Force will continue collaborating with federal partners as it refines oversight for crypto products, artificial intelligence applications, and prediction markets.The post CFTC Launches Innovation Task Force for Crypto Oversight appeared first on Blockonomi.