Overview
- The program, announced Jan. 20 by Chair Mike Selig, will audit and update legacy CFTC rules for digital assets, prediction markets, perpetual futures, and AI‑enabled trading.
- Selig pledged a "minimum effective dose" of regulation and an end to policymaking by enforcement, with fit‑for‑purpose requirements codified through public rulemaking.
- An Innovation Advisory Committee will guide policy design for new markets, as the agency brings on senior hires including Michael Passalacqua and Cal Mitchell to staff the effort.
- The CFTC inspector general warned digital‑asset oversight is a top management risk and noted staffing fell about 21.5% from roughly 708 to 556 employees, raising capacity concerns.
- Pending crypto market‑structure legislation such as the CLARITY Act could expand the CFTC’s authority over spot and derivatives markets, though progress and timelines remain uncertain.