CFTC's Pham to Host Roundtables on Digital Assets and Prediction Markets

The acting chair of the US Commodity Futures Trading Commission (CFTC), Caroline Pham, has announced a series of public roundtable discussions to address market issues, including those related to digital assets. In a notice issued on January 27, the CFTC stated that these events would take place over the next several months and focus on conflicts of interest, prediction markets, and digital assets. Pham emphasized that the discussions would follow engagement with industry leaders and market participants.

Pham, who was appointed acting chair following the inauguration of US President Donald Trump, has been serving as a CFTC commissioner since April 2022. She stated that the CFTC would "get back to basics" by hosting staff roundtables to develop a robust administrative record with studies, data, expert reports, and public input. This holistic approach aims to establish clear rules of the road and safeguards that promote US economic growth and American competitiveness.

In her announcement, Pham also mentioned the potential for regulatory changes regarding crypto assets. She noted that the CFTC's authority could change if US lawmakers in Congress move forward with legislation to differentiate how the agency and the Securities and Exchange Commission (SEC) handle digital assets. One such proposed bill, the Financial Innovation and Technology for the 21st Century, passed the House of Representatives in May 2024 and is expected to go to the Senate for a vote.

Pham's decision to include prediction markets in the roundtables could reignite speculation over the CFTC's stance on the sector. Prediction markets like Polymarket and Kalshi gained prominence toward the end of last year, accurately predicting real-world outcomes, including the winner of the general elections and several other races. The CFTC previously sued Kalshi to halt its political betting contracts but later allowed it to list its presidential outcome markets for US customers. Notably, Polymarket remained unavailable to American users at the time of publication.

The roundtable discussions will occur over several months to align the agency's mandate with industry development. Pham was selected to head the regulatory body by President Donald Trump last week as part of the first official steps to overhaul anti-crypto sentiment entrenched in US market watchdogs. While she is acting chair, the former CFTC Chair Rostin Behnam will formally leave the commission on February 7. Trump's preferred nominee to succeed Behnam has not yet been announced, and it is unclear how