CFTC Launches “Future-Proof” Program to Modernize Crypto Regulations

The U.S. Commodity Futures Trading Commission (CFTC) has launched a new program called Future-Proof to modernize its rules for crypto assets and prediction markets.

CFTC Chair Mike Selig said the agency’s current regulations were originally written for agricultural futures and are no longer suitable for today’s fast-growing crypto and financial technology markets. Selig explained that prediction markets and digital assets have expanded quickly, but clear regulations have not kept up. Crypto is now a multi-trillion-dollar global industry, and the CFTC believes updated, transparent rules are needed to protect investors while allowing innovation to grow.

To guide this process, the agency will rely on its Innovation Advisory Committee, which will make policy recommendations on crypto, prediction markets, and other emerging asset classes. Selig also criticized the CFTC’s past approach of relying mainly on enforcement actions. Under the Future-Proof initiative, the agency wants to shift toward a balanced regulatory strategy that protects markets without slowing innovation.

CFTC Pushes for Clearer Crypto Rules

Selig has also emphasized that rules should be clear, flexible, and designed for modern financial systems. The program also recognizes the growing role of artificial intelligence and blockchain in finance. These technologies now allow for 24/7 trading. For example, the New York Stock Exchange has announced plans to use blockchain for its tokenization platform, enabling round-the-clock trading of stocks and ETFs.

Looking ahead, Selig said the CFTC must prepare for broader responsibilities as the crypto market continues to expand. Under the proposed CLARITY Act, the CFTC and the SEC would share more oversight of the industry. Selig believes the CFTC is well-positioned to regulate blockchain-based assets.

This announcement follows years of tension between U.S. regulators and cryptocurrency companies. Industry leaders, including Coinbase CEO Brian Armstrong, have argued that unclear rules in the U.S. have slowed innovation and forced some firms to move abroad. Selig said the CFTC will move away from “regulation by enforcement” and instead introduce purpose-specific rules through public consultation.

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