CFTC Acting Chair Caroline Pham Announces Plans to Engage with Crypto Industry Leaders

Caroline Pham, acting chair of the Commodity Futures Trading Commission (CFTC), has outlined plans to engage with digital asset stakeholders to discuss market structure and prediction markets. This move comes as the U.S. pivots toward greater crypto adoption.

Pham emphasized that the CFTC “must take a forward-looking approach” to resolve conflicts of interest and policy gaps left by the previous administration. She believes that innovation and new technology have created a renaissance in markets, presenting new opportunities and risks that are accessible to more people.

A Forward-Looking Approach to Regulation

To address these challenges, the CFTC will host a series of staff roundtables to develop a robust administrative record. These discussions will include studies, data, expert reports, and public input, with the goal of aligning agency mandate with industry development.

“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.” – Caroline Pham, acting CFTC chair

Prediction Markets Under Scrutiny

Pham’s decision to include prediction markets in the roundtables has sparked speculation about 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, allowing users to wager on real-world outcomes. These platforms became popular sources of electoral data, accurately predicting the winner of the general elections and several other races.

Key Issues to be Addressed

Some of the key issues that the CFTC will address through these roundtables include:

  • Resolving conflicts of interest and policy gaps left by the previous administration
  • Aligning agency mandate with industry development
  • Addressing the risks and opportunities presented by innovation and new technology

The roundtable discussions will occur over several months, with the goal of developing a more effective regulatory framework for the crypto market.

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