CFTC Establishes Innovation Committee to Lead Crypto and AI Policy
The U.S. Commodity Futures Trading Commission (CFTC) has created an Innovation Advisory Committee (IAC) to help inform regulatory policy around technology innovation, including blockchain, AI, and other emerging technologies. On Monday, CFTC Chair Mike Selig made the announcement as the agency seeks to sharpen its oversight of rapidly changing financial technology (FinTech).
Replacing the previous Technology Advisory Committee, the IAC will infuse top crypto innovators, traditional finance executives, and other industry stakeholders into the process of making pragmatic, forward-looking regulations for an evolving financial ecosystem.
Purposes of the Innovation Advisory Committee
The committee shall focus on the impacts of new products, platforms, and business models in the financial markets on a commercial, economic, and operational basis. Selig said the aim is to establish clear rules to help the “Golden Age of American Financial Markets.”
Innovators use technologies such as artificial intelligence, blockchain, and cloud computing to upgrade old financial systems and create new ones.
Blockchain is changing finance by facilitating quicker, cost-effective, and more transparent transactions, while AI optimizes data analysis, trading, and risk management. The CFTC’s action reflects a technology-friendly shift, similar to the SEC, in regulatory trends in the cryptocurrency and technology space.
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Leaders in Crypto and Traditional Finance Join the Panel
The IAC will be sponsored by Mike Selig, who will appoint 12 charter members from the CFTC CEO Innovation Council. Some of the significant players in the crypto ecosystem include:
- Tyler Winklevoss – CEO of Gemini
- Shayne Coplan – CEO of Polymarket
- Tarek Mansour – CEO of Kalshi
- Kris Marszalek – CEO of Crypto.com
- Arjun Sethi – Co-CEO of Kraken
Big traditional finance executives are also included:
- Jeff Sprecher – CEO of Intercontinental Exchange (ICE)
- Craig Donohue – CEO of Cboe Global Markets
- Adena Friedman – CEO of Nasdaq
The deadline for applications for additional IAC members is Jan. 31, with input from regulators, academia, and public interest groups also considered by the CFTC.
Private-Sector Call for Cooperation to Ensure America’s Future
Venture capital firm Andreessen Horowitz (a16z) focuses on the crypto and AI space. The government and private sector need to innovate to ensure that the U.S. remains competitive and financially dominant this century.
Through the establishment of the IAC, the CFTC is paving the way for a new era of oversight that seeks to bolster innovation while enabling the U.S. to take the lead in blockchain and AI-powered financial services.
