- CFTC relaunches advisory group as Innovation Advisory Committee (IAC).
- The IAC will help the commission understand the impact of emerging tech on the financial system.
- Fear of institutional crypto failures is prompting lawmakers to tighten industry oversight.
The Commodity Futures Trading Commission Chairman Michael Selig has made his first major move as the head of the agency. Chair Selig announced the launch of the Innovation Advisory Committee (IAC) to help the commission understand the impact of emerging technologies on the financial systems.
CFTC Chair Renames Technology Advisory Committee
According to the announcement, Chair Selig renamed the Technology Advisory Committee to the Innovation Advisory Committee. The IAC will include leaders from different sectors, including the financial industry, tech providers, public interest groups, academia, market infrastructure firms, and regulatory bodies.
The CFTC Chair Selig stated that he will sponsor IAC and will nominate participants of the CEO Innovation Council. The members of the CEO Innovation Council were nominated by former acting CFTC chair Caroline Pham to catalyze the agency’s Crypto Sprint.
Additionally, the IAC will accept additional members through submissions by January 31, 2026. As such, members of the public can nominate individuals before the set deadline.
Chair Selig stated that the commission will focus on developing fit-for-purpose market structure regulations to align with President Donald Trump’s agenda. Furthermore, President Trump has laid significant groundwork for the mainstream adoption of crypto and artificial intelligence (AI) to modernize the country’s capital markets.
The IAC will focus on assisting the commission with relevant information to help understand the impact of technology on financial services, derivatives, and commodity markets. Additionally, the IAC will advise the commission on the appropriate level of investment in technology to help meet its enforcement objectives.
Why Now?
The CFTC has moved quickly to implement President Trump’s Working Group on Digital Assets recommendations, with a target of August 2026. Under President Trump, the crypto industry has gained more regulatory clarity to minimize calamities caused by unprecedented project failures, such as the collapse of FTX and Tera Luna UST.
Currently, the CFTC is awaiting the Senate to finalize the CLARITY Act so it can be sent to President Trump to provide much-needed clarity.
Related: Michael Selig Confirmed as CFTC Chairman as Crypto Market Structure Bill Advances
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Source: https://coinedition.com/cftc-chair-michael-selig-launches-an-advisory-group-to-foster-clarity/
