Acting Commodity Futures Trading Commission (CFTC) Chair Caroline D. Pham is spearheading the creation of a "CEO Innovation Council" to advise the agency on regulating virtual assets and other emerging technologies. The move comes as the CFTC seeks to expand its regulatory oversight of the crypto space.

Pham is soliciting nominations from industry CEOs to join the council, with submissions due by December 8, 2025. The council is expected to commence full operations in January 2026, coinciding with a potential Senate vote on virtual asset market structure legislation. According to Eleanor Terrett, host of Crypto in America, the council will play an advisory role in shaping regulations for both prediction markets and virtual assets.

The "CEO Innovation Council" aims to guide the CFTC in establishing rules and guidance for new market technologies, including cryptocurrency, prediction markets, and perpetual contracts. Pham emphasized the importance of engaging with the public and involving industry leaders to ensure markets remain vibrant, resilient, and safe for all participants. She stated that the CFTC needs to enhance its engagement with the public, supported by industry experts and innovators who are shaping the future.

The formation of this expert group aligns with ongoing efforts to establish a regulatory framework for the virtual asset industry. Key issues expected to be addressed include prediction markets, derivatives, and token classification. The CFTC has been actively involved in various initiatives related to digital assets, including the "Crypto Sprint" and a crypto industry forum.

Pham has been instrumental in driving the CFTC's work on digital assets since taking office, including the Crypto CEO Forum, perpetual contracts, and expanding trading for digital assets. The agency has also explored tokenized collateral, stablecoins, and the potential of blockchain technology in market systems.

Furthermore, Pham has supported the recommendations from the President's Working Group on Digital Asset Markets, scheduled to continue through August 2026. This plan focuses on supporting the trading of listed spot cryptocurrencies and tokenized collateral, as well as creating rules that utilize blockchain technology in market systems.

The establishment of the CEO Innovation Council underscores the CFTC's commitment to proactively address the challenges and opportunities presented by the rapidly evolving digital asset landscape. By engaging with industry leaders and experts, the CFTC aims to develop informed and effective regulations that foster innovation while safeguarding market integrity and protecting investors.

However, the future leadership of the CFTC remains uncertain, as Michael Selig, an official from the Securities and Exchange Commission (SEC), has been nominated as the Senate-confirmed chair of the commission. While the Senate has yet to vote on Selig's nomination, his recent testimony before the Agriculture Committee suggests he recognizes the necessity of a regulatory presence in the spot digital asset commodity markets and values diverse viewpoints within the CFTC.