U.S. CFTC Launches Innovation Task Force to Advance Crypto and AI Regulations

• CFTC unveils Innovation Task Force led by Michael Passalacqua to advance crypto rule clarity.
• The task force combines regulators and industry experts in crypto, AI, and markets.
• CFTC targets crypto, AI, and prediction markets under a new innovation agenda.

The U.S. CFTC has introduced the first members of its newly formed Innovation Task Force. The move marks a fresh step toward clearer crypto regulations as competition between agencies over oversight intensifies.

The task force, led by senior advisor Michael Passalacqua, seeks to bridge regulatory expertise with private-sector experience, focusing on crypto assets, blockchain technology, artificial intelligence, and prediction markets.

According to the CFTC, the Innovation Task Force brings together a mix of internal officials and industry professionals with backgrounds spanning major law firms, fintech, and blockchain advocacy groups like the Blockchain Association.

Key members include Hank Balaban, a former crypto lawyer at Latham & Watkins; Sam Canavos, previously advising on crypto regulation at Patomak Global Partners; Mark Fajfar, a long-time CFTC legal expert; Eugene Gonzalez IV, a blockchain-focused attorney from Sidley Austin; and Dina Moussa, a special counsel within the agency.

Passalacqua highlighted the blend of experience in a public statement, pointing to a team that combines regulatory depth with hands-on industry exposure.

The initiative is part of a strategy under Chairman Michael S. Selig to establish what he described as “clear rules of the road” for innovators. The task force will prioritize three core areas:

• Crypto assets and blockchain
• Artificial intelligence and autonomous systems
• Prediction markets and event-based contracts

Alongside the task force, the CFTC has also rolled out an “innovation tracker” to showcase ongoing regulatory efforts and improve transparency in policy development.

Related: Crypto Gets Clarity as SEC, CFTC Say Most Tokens Aren’t Securities

The move comes as U.S. regulators continue to define their roles in overseeing digital assets. The U.S. SEC has recently suggested that many cryptocurrencies may fall outside its securities classification, strengthening the CFTC’s position as a primary regulator.

However, long-term clarity still hinges on legislation such as the proposed Clarity Act, which has yet to pass. SEC Chair Paul Atkins has urged lawmakers to move forward, noting that both agencies are prepared to implement a comprehensive framework.

Ultimately, the creation of the Innovation Task Force highlights growing urgency among U.S. regulators to provide consistent guidance for the crypto sector.

With institutional interest rising and new technologies expanding rapidly, the CFTC’s latest move marks an effort to align regulation with innovation while reducing uncertainty for market participants.

Related: CFTC Chair Urges Clear Prediction Market Rules to Prevent FTX-Style Collapses