CFTC’s Crypto Council: A New Era of Derivatives? 📜💰

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Notable Points

  • The CFTC has assembled an illustrious assembly of executives to form the newly instituted CEO Innovation Council, whose purpose is to navigate the ever-evolving landscape of derivatives markets with the grace of a seasoned diplomat.
  • This council shall guide the CFTC’s policy on tokenization, crypto assets, perpetual futures, prediction markets, and 24/7 trading-topics as thrilling as a ballroom dance and as complex as a Shakespearean sonnet.
  • Among the early members are esteemed leaders from prominent exchanges such as CME, Cboe, Nasdaq, ICE, Kraken, Gemini, and Crypto.com, each bringing their unique charm to the table.

The esteemed Acting Chair of the Commodity Futures Trading Commission (CFTC), Caroline Pham, unveiled the inaugural cohort of executives destined to join the CFTC’s newly minted CEO Innovation Council. This council, a public forum of considerable repute, invites leaders from major exchanges and crypto platforms to engage in discourse on the metamorphosis of derivatives markets, particularly as technology reshapes the art of trading.

In her address, Pham declared, “The CFTC continues to lead on groundbreaking initiatives that exemplify responsible innovation with public engagement and expert input.” The council, it must be noted, is especially fixated on “market structure developments in derivatives markets such as tokenization, crypto assets, 24/7 trading, perpetual contracts, prediction markets and blockchain market infrastructure.” A veritable whirlwind of activity, indeed.

She further remarked that the council builds upon earlier endeavors, including the CFTC’s Crypto CEO Forum and collaborative discussions with the SEC. “I am grateful to the CEOs who have agreed to share their vision and experience with the Commission,” Pham concluded, her words dripping with gratitude and a hint of sarcasm.

The Distinguished Assembly

The council’s early members were gathered with remarkable haste over two weeks, according to the agency. The initial list of members includes executives from traditional exchanges and digital-asset platforms, each a paragon of their field:

  • Shayne Coplan, the esteemed CEO of Polymarket
  • Craig Donohue, the distinguished CEO of Cboe Global Markets
  • Terry Duffy, the venerable Chairman and CEO of CME Group
  • Tom Farley, the enterprising CEO of Bullish
  • Adena Friedman, the accomplished Chair and CEO of Nasdaq
  • Luke Hoersten, the capable CEO of Bitnomial
  • Tarek Mansour, the visionary CEO of Kalshi
  • Kris Marszalek, the dynamic CEO of Crypto.com
  • David Schwimmer, the erudite CEO of LSEG
  • Arjun Sethi, the co-CEO of Kraken
  • Jeff Sprecher, the formidable CEO of Intercontinental Exchange (ICE)
  • Tyler Winklevoss, the astute CEO of Gemini

The CFTC shared that it is still perusing additional applications and may expand the council, a process as slow as a snail in a race against time.

Under Pham’s stewardship, the agency has accelerated work on the digital asset market structure. Recent moves include a pilot program allowing crypto collateral in derivatives markets and Bitnomial’s launch of leveraged spot crypto trading-a testament to the CFTC’s adventurous spirit.

These initiatives fall under the CFTC’s broader “Crypto Sprint,” running through August 2026, which examines listed spot crypto trading, tokenized collateral, stablecoins, and blockchain-based market infrastructure. A journey as ambitious as a Jane Austen heroine’s quest for love and fortune.

The Transition of Power

The announcement coincides with notable leadership transitions at the commission. In October, the U.S. President Donald Trump appointed Mike Selig as the CFTC’s next permanent Chair, a move aligned with the administration’s effort to fortify the U.S. position in digital-asset policy. A man of considerable repute, Selig is known for his crypto regulatory work, having served as Chief Counsel of the SEC’s Crypto Task Force and previously worked at the CFTC under former Chairman Chris Giancarlo, a figure affectionately dubbed “Crypto Dad.”

In January, President Trump elevated Pham, then a Junior Commissioner, to Acting Chair, and the commission confirmed her in that role. Pham is expected to hand over leadership once the Senate votes on Selig’s confirmation. If approved, he will step into an agency already deeply engaged in a wide set of crypto-focused policy projects initiated during her tenure-a scenario as tumultuous as a Regency-era ballroom.

The CFTC’s Recent Endeavors

The CFTC has also made two major crypto moves this week. First, it launched a three-month pilot allowing Bitcoin, Ether, and USDC to be used as margin collateral in U.S. derivatives markets. Futures Commission Merchants, firms that facilitate futures trading for clients, can now accept these assets under strict weekly reporting and risk-control requirements, a marked departure from the agency’s earlier restrictions on crypto collateral.

Additionally, the CFTC approved spot cryptocurrency trading on U.S.-regulated exchanges for the first time. Bitnomial will launch the first product, a Leveraged Spot Digital Asset, next week. Pham remarked the decision follows directives from President Trump and coordination with the Securities and Exchange Commission. A union as harmonious as a well-tuned orchestra.

Together, these steps signal the agency’s push to bring more crypto activity into regulated U.S. markets while adding clearer rules around collateral, settlement, and customer protection-a mission as noble as it is perplexing.

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2025-12-11 11:08