Washington Taps Industry Experts To Bridge Policy Gap.
The Commodity Futures Trading Commission is making a deliberate attempt to close the distance between policy and practice.
By appointing 35 companies to its Innovation Advisory Committee (IAC), the regulator is signalling a departure from the adversarial relationship that has defined the last few years. The group, which includes a mix of legacy financial institutions and digital asset pioneers, has been tasked with providing the agency with real-world intelligence.
According to a statement released on 12 Feb, the objective is to develop clear rules of the road that reflect the current market landscape. CFTC Chairman Michael Selig suggested that the work of the IAC will help the agency future-proof its markets during what he termed a golden age for US finance. $BTC
A seat at the table
The committee represents a broad cross-section of the financial world. It brings together traditional exchange operators such as the London Exchange Group and Nasdaq with crypto industry leaders including Coinbase, Gemini and Ripple. The inclusion of prediction platforms like Polymarket and Kalshi is particularly notable, given the recent legal scrutiny surrounding those sectors. Venture capital firms, including a16z crypto and Paradigm, also have a voice in the room.
This gathering of diverse interests is intended to help the CFTC keep pace with innovations such as artificial intelligence and onchain technologies. While the agency aims to maintain robust financial oversight, the involvement of industry heavyweights will inevitably raise questions about the balance of power between the regulated and their regulators. $ETH