CFTC Courts CEOs to Tame Fast-Moving Crypto Markets

The Commodity Futures Trading Commission (CFTC) is accelerating its engagement with the crypto industry as Acting Chair Caroline Pham seeks chief executives to join a newly formed innovation council. The initiative, announced on November 26, aims to strengthen the agency's regulatory framework for digital assets and prediction markets amid growing legislative momentum to expand the CFTC's oversight role. Nominations for the council, which will advise on policy development and market innovation, are due by December 8 according to reports.

Pham emphasized the need for collaboration with industry leaders to "hit the ground running" as the CFTC prepares to regulate a rapidly evolving sector according to data. The council will focus on addressing challenges posed by crypto spot trading and emerging technologies like prediction markets. This aligns with the CFTC's "Crypto Sprint" initiative, launched earlier this year to clarify rules for digital assets, and precedes potential legislative action on a currently under consideration in the Senate.

The CFTC's expanded authority could become law as early as January 2026, with bipartisan support for clarifying the agency's role in overseeing crypto spot markets according to reports. However, the path forward remains uncertain, as legislative progress has stalled and the CFTC faces internal challenges, including staffing shortages. The agency employs just 543 people-far fewer than the SEC's 4,200-raising concerns about its capacity to manage complex regulatory demands according to analysis.

Pham, who has served as the lone CFTC commissioner since April 2022, is set to step down once President Donald Trump's nominee, is confirmed by the Senate. Selig, a former SEC crypto task force leader, has positioned himself as a pro-crypto advocate, advocating for "harmonization" between the SEC and CFTC to streamline regulations. His confirmation hearing highlighted tensions over resource allocation and bipartisan representation, with critics warning that the agency's leadership vacuum has already created "chaos" in markets according to reports.

The CFTC's regulatory push is gaining traction in the private sector. Polymarket recently received CFTC approval to operate an intermediated trading platform in the U.S., enabling partnerships with brokerages and compliance with federal exchange standards. The approval marks a significant shift, as prediction markets-once viewed with skepticism by regulators-now gain legitimacy as tools for forecasting geopolitical and macroeconomic events according to analysis.

Meanwhile, venture capital activity in crypto rebounded in Q3 2025, reaching $4.65 billion-the second-highest level since the FTX collapse. Investments in stablecoins, blockchain infrastructure, and trading platforms dominated, with companies like securing major funding rounds. Analysts attribute the surge to growing institutional interest in crypto ETFs and digital asset treasuries, though regulatory uncertainty continues to dampen broader enthusiasm.

As the CFTC navigates these developments, Pham's call for industry collaboration underscores a broader trend: regulators are increasingly seeking input from private-sector leaders to balance innovation with investor protection. The success of the CEO Innovation Council-and the CFTC's broader crypto agenda-will depend on bridging the gap between rapid technological advancements and the complex, often fragmented regulatory landscape.

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