Acting Chair Caroline Pham introduced public roundtables for crypto and prediction markets, signaling fresh CFTC regulatory focus.
The CFTC faced legal challenges over election contracts with operator Kalshi, but a district court favored broader market freedom.
Congress’s potential FIT 21 Act assigns digital asset oversight to SEC or CFTC depending on decentralization, boosting industry certainty.
The US Commodity Futures Trading Commission () has initiated a fresh regulatory phase under Acting Chair Caroline Pham. On Monday, Pham announced a series of public roundtable discussions aimed at examining the rapidly evolving crypto and prediction markets. The agency is shifting its focus to address the pressing need for clarity in industries experiencing rapid technological innovation.
“The CFTC will get back to basics by hosting staff roundtables that will develop a robust administrative record with studies, data, expert reports, and public input. A holistic approach to evolving market trends will help to establish clear rules of the road and safeguards that will promote US economic growth and American competitiveness,” Pham stated.
“The CFTC will get back to basics by hosting staff roundtables that will develop a robust administrative record with studies, data, expert reports, and public input. A holistic approach to evolving market trends will help to establish clear rules of the road and safeguards that will promote US economic growth and American competitiveness,” Pham .
She underscored the agency’s commitment to crafting clear rules that would promote US economic growth and competitiveness. Over the coming months, these roundtables will engage industry leaders and stakeholders to foster a well-rounded understanding of market trends.
Prediction Markets Under Fire
Prediction markets, which gained popularity during the last election season, have long been a focus for the CFTC. These platforms allow participants to bet on future events, from election outcomes to weather patterns. However, legal disputes have clouded their growth. The CFTC faced off with prediction market operator Kalshi in 2023, the company’s election contracts were “contrary to the public interest.”
As the legal dust settles, the CFTC has also moved to propose rules banning political event bets. Former CFTC Chair Rostin Behnam had pushed for stricter oversight of prediction markets before stepping down on January 20. His last day with the agency is set for February 7, leaving the CFTC in need of permanent leadership.
Meanwhile, the Securities and Exchange Commission (), the CFTC’s counterpart, has also seen significant changes. Former SEC Chair Gary Gensler, criticized for his hardline “regulation by enforcement” approach, stepped down last week. His successor, Paul Atkins, is expected to bring a more crypto-friendly stance if confirmed by the Senate.
Congress Pushes FIT 21 Act
The digital asset sector has been calling for clarity, and Congress appears ready to deliver. The Financial Innovation and Technology for the 21st Century Act (FIT 21) remains a cornerstone legislative effort. Passed by the House in the last Congress, FIT 21 aims to define a regulatory framework for digital assets, splitting oversight between the SEC and the CFTC.
BREAKING: Crypto bill FIT21 just passed the House, 278 to 136 pic.twitter.com/k0qpg9MlUO
BREAKING: Crypto bill FIT21 just passed the House, 278 to 136
Under the act, assets would be classified based on decentralization and their acquisition context. Restricted digital assets fall under SEC jurisdiction, while the CFTC oversees digital commodities. Once a blockchain network becomes decentralized and functional, the CFTC gains regulatory authority, signaling a shift favorable to the industry.
Republican control of Congress improves the odds of FIT 21 advancing further. In parallel, bipartisan efforts on stablecoin legislation show promise, with lawmakers working to create a regulatory environment that satisfies both parties. Such developments highlight a growing consensus on addressing legal uncertainty in the crypto space.
