CFTC Establishes Innovation Task Force to Regulate Prediction Markets

The US Commodity Futures Trading Commission (CFTC) has taken a significant step in regulating the rapidly growing field of prediction markets. The CFTC has established an Innovation Task Force to develop regulatory frameworks for companies building on new technologies, including crypto and blockchain, artificial intelligence and autonomous systems, and prediction markets.

The task force will be led by Michael J. Passalacqua, senior advisor to CFTC Chairman Michael Selig, and will work alongside the commission to provide clarity to builders and advance the CFTC's innovation agenda. The regulator has been busy in recent months, particularly as it relates to its relationship with prediction markets and their rapid growth.

The CFTC is inviting public comment on whether or not it needs to amend or write new rules on prediction market oversight. This move comes amid increasing scrutiny of prediction markets, with lawmakers introducing bills to regulate or ban them. The CFTC has maintained that it is the governing body for prediction markets, and Chairman Selig recently said that his agency would 'see you in court' to those who challenge its jurisdiction.