The Commodity Futures Trading Commission launched a new Innovation Advisory Committee (IAC), to advise the agency on blockchain and artificial intelligence in derivatives, commodities and financial services.
CFTC Chairman Michael S. Selig sponsored the committee as part of a broader push to move the Commission from reactive enforcement toward proactive policy development. The IAC will study commercial and market impacts of emerging products and recommend changes to surveillance, oversight tools and rulemaking to preserve market integrity while accommodating innovation.
The IAC’s remit goes beyond high‑level advice. It is charged with: analysing how blockchain and AI change market behaviour; recommending what monitoring and enforcement tools the CFTC needs; and proposing adjustments to existing rules or new rules where current frameworks do not map well to novel business models. The committee is explicitly framed to weigh commercial, economic and practical considerations so rules remain effective and proportionate.
The panel — renamed from the former Technology Advisory Committee — was created to help the CFTC design “fit‑for‑purpose” rules that integrate legacy market structures with rapidly evolving fintech, according to a CFTC press release.
One short statement from the agency framed the goal succinctly: ‘The Innovation Advisory Committee will gather expertise and recommendations on innovation in financial markets,’ Chairman Michael S. Selig said on Jan. 12, 2026.
Membership profile and CFTC governance
Selig plans to sponsor and nominate initial members drawn from the CEO Innovation Council, with an expected slate of 12 charter members that mix crypto‑native executives and established exchange operators. That blend is intended to ground regulatory choices in operational realities while preserving experience with market structure and compliance.
The CFTC also opened the process to wider participation, inviting nominations and topic suggestions through Jan. 31, 2026, to broaden stakeholder input and ensure a diverse set of perspectives for the committee’s work.
By assembling both crypto and legacy finance leaders, the agency aims to bridge the gap between novel product design and the mechanics of surveillance, clearing and custody that underpin market stability. That practical orientation should help keep recommendations implementable, rather than purely theoretical.
For market participants, the committee’s emphasis on tools and rule tweaks signals that regulatory clarity — not blanket restriction — is the stated objective. At the same time, the IAC will be scrutinized for how it balances innovation with investor protection and systemic‑risk concerns.
Investors, exchanges and fintech firms are likely to watch the IAC’s early outputs closely. The nomination window closes Jan. 31, 2026, and the committee’s initial recommendations and any proposals to adapt existing CFTC rules will shape market behaviour and compliance priorities in the months that follow.
