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 that the agency will be hosting public roundtable discussions on market issues, including those related to digital assets. In a notice issued on January 27, the CFTC stated that these roundtable events will take place over the next several months and will focus on conflicts of interest, prediction markets, and digital assets. Pham emphasized that these discussions will follow engagement with industry leaders and market participants.

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."

The announcement comes less than a week after CFTC commissioners voted for Pham to be the regulator's acting chair following the inauguration of US President Donald Trump. Pham has been serving as a CFTC commissioner since April 2022. It is unclear at the time of publication whom Trump intends to nominate to serve as chair.

Former CFTC Chair Rostin Behnam, who stepped down from his position on January 20, will remain at the commission until February 7. In one of his final statements as head of the regulator, he urged policymakers to address regulatory gaps on crypto.

The CFTC's authority to regulate crypto could change should US lawmakers in Congress move forward with legislation to differentiate how the agency and the Securities and Exchange Commission handle digital assets. One of the proposed market structure bills, 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. Previously, former chair Rostin Behnam criticized prediction markets, declaring them harmful to public interest. Prediction markets like Polymarket and Kalshi gained prominence toward the end of last year, accurately predicting the winner of the general elections and several other races.

The roundtable discussions will occur over several months to align agency mandate with industry development, Pham said in her CFTC-issued statement. Pham was selected to head the regulatory body by