The US Commodity Futures Trading Commission chairman used the Innovation Advisory Committee’s inaugural meeting to outline a regulatory roadmap covering crypto assets, compute markets and prediction markets. He directed staff to explore rules that would use the agency’s existing authority to establish a crypto asset market structure if Congress does not enact market structure legislation, while allowing time for a vote on the proposed CLARITY legislation. The potential crypto framework could allow registered firms and unregistered crypto exchanges to seek designation as a type of designated contract market and offer leveraged or margined crypto asset trading under tailored CFTC rules. Staff will also engage with onchain finance protocol developers on compliant pathways. For compute markets, the CFTC will use feedback from its recently issued request for comment to develop a regulatory framework in partnership with the Department of Commerce. On prediction markets, the chairman reviewed recent proposals to define key terms and public interest criteria for event contracts and modernize reporting for fully collateralized contracts. He also expects the Commission soon to propose amendments to designated contract market requirements and contract-listing rules, including consumer protections and expectations for product governance, market design and incentive programs.

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