TLDR
- The CFTC has launched the Innovation Advisory Committee to guide regulation on AI and blockchain technologies.
- Chairman Michael Selig announced the new panel as his first major policy initiative since taking office.
- The new committee replaces the former Technology Advisory Committee and expands its focus.
- The committee will include members from financial institutions, tech firms, academia, and regulatory bodies.
- The CFTC is accepting nominations for new committee members through January 31.
The Commodity Futures Trading Commission (CFTC) has established a new advisory group focused on blockchain, AI, and financial market innovation, marking Chairman Michael Selig’s first policy initiative since taking office. The Innovation Advisory Committee will help shape regulatory approaches to fast-evolving technologies in commodity derivatives markets and replaces the former Technology Advisory Committee. The CFTC is accepting new nominations through January 31 to expand the committee’s membership.
Innovation Advisory Committee Replaces Technology Panel
The CFTC confirmed that the Innovation Advisory Committee will include experts from industry, academia, public interest groups, and regulatory agencies. The panel replaces the Technology Advisory Committee and builds on work by the CEO Innovation Council created by former Acting Chair Caroline Pham. The agency has restructured the committee to reflect current priorities in AI, blockchain, and cloud computing oversight.
Chairman Michael Selig said the committee will help the CFTC create “clear rules of the road” for advancing U.S. financial markets. He emphasized the need for regulatory clarity as Congress prepares digital asset legislation. “Innovators are harnessing technologies to modernize legacy financial systems and build entirely new ones,” Selig stated.
The committee’s charter includes advising the CFTC on commercial, legal, and economic impacts of new technologies. It will also recommend how much the agency should invest in enforcement and surveillance tools. These recommendations will support the agency’s ability to oversee complex, tech-driven financial products and services.
Michael Selig Begins CFTC Tech Overhaul
Michael Selig assumed leadership of the CFTC in December after Senate confirmation and is now implementing structural changes. Before his appointment, he served as chief counsel for the SEC’s Crypto Task Force and advised SEC Chairman Paul Atkins. His prior work included shaping digital asset frameworks and contributing to White House policy reports.
Selig’s private sector experience involved guiding clients through regulatory issues in digital assets and derivatives markets. This background informs his current push to modernize CFTC oversight tools. He pledged that under his leadership, innovation in U.S. markets will remain secure and domestic.
“The CFTC will conquer these great frontiers and ensure innovations are Made in America,” Selig said during the announcement. The new committee aims to address challenges created by AI-driven financial platforms and blockchain-based trading models. Selig positioned the group as essential for balancing growth with regulatory oversight.
Crypto Legislation Slows Ahead of Elections
The new panel’s launch occurs during complex negotiations over digital asset rules in the U.S. Senate. Lawmakers have postponed the markup of the Digital Asset Market Clarity Act until late January due to unresolved policy issues. Senators are working to finalize bill language following negotiations led by Senator John Boozman and Senator Cory Booker.
Banking groups are pressuring lawmakers to limit stablecoin rewards beyond the GENIUS Act’s provisions. Crypto firms, including Coinbase, warned they may pull support if additional restrictions are added. Meanwhile, some Democrats requested a full committee hearing before any vote, citing transparency concerns.
Senator Cynthia Lummis introduced separate legislation to protect open-source blockchain developers from being classified as money transmitters. Her bill argues that writing code does not equal providing custody of digital assets. These developments affect over 68 million crypto users and a market valued at $3 trillion.
Analysts at TD Cowen forecast that U.S. elections in 2026 could delay comprehensive legislation into 2027. The advisory committee may influence CFTC positions as these legislative efforts continue. For now, Selig is moving forward with regulatory readiness, emphasizing security and innovation together.
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