TLDR

  • The CFTC has appointed 35 individuals to its Innovation Advisory Committee.
  • The committee includes the CEOs of Coinbase and Ripple.
  • This new committee succeeds the Technology Advisory Committee, which was established in January.
  • Michael Passalacqua has been designated as the committee’s federal officer.

The U.S. derivatives regulator is revising its approach to financial innovation by formally including prominent cryptocurrency leaders in an advisory capacity. The Commodity Futures Trading Commission announced the roster for its Innovation Advisory Committee on Thursday. This 35-member group comprises executives from Coinbase and Ripple, alongside leaders from various exchanges and clearing firms.

Chairman Michael S. Selig stated that the committee will assist the agency in “reflecting market realities” and in establishing “clear rules of the road” for evolving markets. Selig sponsored the committee and put forward Michael Passalacqua as the designated federal officer.

Coinbase and Ripple executives are part of a diverse group of market leaders

Coinbase CEO Brian Armstrong and Ripple CEO Brad Garlinghouse have been appointed to the committee. They join other cryptocurrency executives, such as Uniswap Labs CEO Hayden Adams, Solana Labs CEO Anatoly Yakovenko, and Chainlink Labs CEO Sergey Nazarov. Additional digital-asset leaders on the committee include Kraken Co-CEO Arjun Sethi and Gemini CEO Tyler Winklevoss.

The committee also features Crypto.com CEO Kris Marszalek and Grayscale CEO Peter Mintzberg. Furthermore, Anchorage Digital CEO Nathan McCauley and Blockchain.com CEO Peter Smith have been appointed. The membership extends to executives from major market infrastructure companies, including Nasdaq Chair and CEO Adena Friedman.

CME Group Chair and CEO Terry Duffy and Intercontinental Exchange CEO Jeff Sprecher are also named members. Cboe Global Markets CEO Craig Donohue and LSEG CEO David Schwimmer are on the list, as is DTCC President and CEO Frank LaSalla. Options Clearing Corporation CEO Andrej Bolkovic has also been appointed.

Prediction markets and crypto firms hold significant representation

Several leaders from prediction markets are included in the committee. Polymarket CEO Shayne Coplan and Kalshi CEO Tarek Mansour have been appointed. FanDuel President Christian Genetski and DraftKings CEO Jason Robins are also named members.

The group also includes representatives from venture capital and trading firms, such as Chris Dixon of a16z crypto and Alana Palmedo of Paradigm. The committee is expected to provide advice on emerging products and platforms.

It will also address business models within financial markets, with a stated focus on commercial and practical considerations. Selig indicated that the committee will help the agency keep pace with changes driven by market forces like artificial intelligence and blockchain. The committee is positioned as a resource for the CFTC’s policy development.

The committee replaces a previous panel and signals coordination with the SEC

The Innovation Advisory Committee takes the place of the Technology Advisory Committee, which previously focused on the impact of new technologies on derivatives markets. The CFTC stated that the new committee was launched in January. The announcement also noted a more receptive stance towards cryptocurrency. The report also highlighted the CFTC’s collaboration with the Securities and Exchange Commission on regulating the sector.

This collaborative effort includes “Project Crypto” and a memorandum of understanding between the SEC and CFTC to address jurisdictional questions. The CFTC also plans to consider input from sources beyond the committee, including regulators, academia, and public interest groups.

Academic representatives appointed to the committee include Professor Harry Crane and Professor Carla Reyes. The full membership encompasses a broad range of entities, including exchanges, clearinghouses, trading firms, and technology companies, a mix the agency believes will support modern rulemaking. Selig reiterated the goal of maintaining transparent and well-regulated U.S. markets.