CFTC Presents Regulatory Roadmap for Derivatives and Cryptoasset Markets

The U.S. Commodity Futures Trading Commission (CFTC) outlined its regulatory vision for the future of financial markets in Washington D.C., covering derivatives, digital assets, and predictive markets. The chairman of the agency emphasized the importance of clear rules to enable responsible innovation, its support for the institutionalization of cryptoasset markets, and the defense of federal jurisdiction against state initiatives.

Innovation and Evolution of the Regulatory Framework in the U.S.

Since 1974, the CFTC has been the central regulator of derivatives markets in the United States, allowing innovation to thrive under a unified federal scheme. When Congress passed the Commodity Futures Trading Commission Act, it expanded oversight to a range of emerging contracts beyond traditional agricultural products. This broad new definition allowed almost any good, service, right, or event to serve as the underlying for a derivatives contract.

Congress granted the CFTC "exclusive jurisdiction" over these markets and established the legal mandate to promote responsible innovation. Pioneering exchange operators were able to develop contracts such as derivatives on weather, interest rates, and equities. The Futures Modernization Act of 2000 replaced prescriptive regulations with a principles-based approach, giving flexibility to operators and innovators.

"The breadth of this definition shows that lawmakers intentionally chose not to fragment regulatory authority over derivatives markets according to the type of underlying," said the CFTC Chairman.

CFTC and Cryptoasset Regulation: Towards a Clear Legal Framework

Under the current administration, the CFTC is pushing for the creation of an explicit regulatory framework for cryptoasset markets in the United States. Following President Trump’s inauguration in January 2025 and the replacement of the senior official from the Securities and Exchange Commission (SEC), the official goal is to make the country the global "crypto capital."

The so-called "regulation by enforcement" under the previous administration generated uncertainty: many companies were unsure whether they were complying with the law due to the lack of published rules. The chairman of the CFTC worked alongside the SEC on the Crypto Project to define a taxonomy that clarifies which digital assets are securities and which are not. The CFTC supports the approval of bipartisan legislation known as CLARITY, which would establish principles and distinctions for spot markets of cryptoassets. If it is not approved, the regulator plans to use its existing authority to implement rules tailored to crypto markets.

The CFTC chairman stated that the agency’s staff is already working on rules to designate crypto markets as "designated contract markets" under federal oversight, allowing for margin and leveraged trading. He also announced a collaboration with decentralized finance developers to ensure regulatory compliance of on-chain protocols in the U.S. market.

Roadmap for Artificial Intelligence and Computing Assets

The growth in demand for advanced computing resources, such as GPU clusters, is transforming competition and innovation in the field of artificial intelligence. The Trump administration's action plan, "America’s AI Action Plan," urges federal agencies to ensure large-scale access to computing resources for startups and universities. The CFTC, in cooperation with the Department of Commerce, initiated a public consultation process on structuring contracts markets for computing capacity. The objective: to establish a robust regulatory standard that allows for the transparent and efficient pricing of these new digital "commodities."

Modernization of Predictive Markets Under the CFTC

The CFTC reaffirmed its defense of federal jurisdiction over predictive markets, in the face of the proliferation of state anti-gaming laws that seek to impose additional restrictions. Contracts dependent on events, contingencies, or incidents outside the control of the parties, defined in U.S. legislation as "event contracts," have been part of the market for decades. The proposed regulation seeks to define key terms, establish objective criteria for public interest, and modernize the reporting framework for these contracts, introducing additional protections for retail consumers.

Recently, the CFTC proposed amendments to Rule 40.11, which distinguishes event contracts related to sensitive public policies such as war, terrorism, murder, gambling, and illegal activities, allowing for discretionary prohibition on public interest grounds. Additionally, clearer requirements are being promoted for product governance, market design, and incentives for operators, along with a modernization of regulatory oversight and reporting.

"History shows that regulation and innovation must go hand in hand. Without clear rules, entrepreneurs and visionaries seek more predictable markets," declared the CFTC chairman during the inaugural meeting of the Advisory Committee on Innovation.

Immediate Perspectives and Next Regulatory Steps

The CFTC is preparing to implement new rules across various fronts of financial innovation, from the structure of crypto markets and artificial intelligence contracts to the protection of retail users in predictive markets. The commission calls for active participation from the sector and confirms its willingness to execute reforms once Congress approves them or, should legislative obstacles persist, will proceed under its current authorities. Sector participants, including platform operators, developers, and institutional players, are invited to engage in policy development to maintain financial innovation under U.S. supervision and with recognized global standards.