On March 24, 2026, the Commodity Futures Trading Commission (CFTC) announced the formation of a new Innovation Task Force focused on developing a regulatory framework for emerging technologies, including prediction markets and event contracts.[1]
According to the CFTC, the Task Force is intended to advance "clear rules of the road" for market participants developing novel products within U.S. derivatives markets. It will work alongside the Commission and its Innovation Advisory Committee to help shape regulatory approaches to rapidly evolving sectors.
The Task Force's mandate spans several priority areas, including crypto assets and blockchain technologies, artificial intelligence, and prediction markets. The inclusion of event contracts alongside crypto and AI underscores the extent to which prediction markets have become a central part of the Commission's innovation agenda.
The initiative will be led by Michael J. Passalacqua, a senior advisor to the Chairman, and is expected to coordinate with other federal regulators, including the Securities and Exchange Commission (SEC). This interagency approach suggests a broader effort to harmonize oversight of products that do not fit neatly within traditional regulatory frameworks.
The announcement builds on recent CFTC actions emphasizing both innovation and market integrity. Earlier this month, the Commission issued guidance highlighting manipulation and insider trading risks in prediction markets, while, as we recently reported, platforms such as Kalshi and Polymarket have begun adopting enhanced controls in response to growing regulatory and legislative scrutiny.
Against this backdrop, the Task Force signals a shift toward a more formal and forward-looking regulatory approach. Its focus on prediction markets suggests the CFTC is positioning itself to play a central role in defining the scope and governance of event contracts in U.S. markets.
Venable's Investigations and White Collar Defense Group is actively monitoring developments in the regulation of prediction markets and will continue to provide updates on key litigation, enforcement, and legislative activity.
[1] Commodity Futures Trading Commission, CFTC Announces Innovation Task Force (Mar. 24, 2026), https://www.cftc.gov/PressRoom/PressReleases/9201-26.