The U.S. Commodity Futures Trading Commission’s Innovation Advisory Committee held its inaugural meeting in late August, examining prediction-market oversight, planned amendments to Rule 40.11, crypto market structure and artificial intelligence. Chairman Michael S. Selig said Congress granted the CFTC exclusive authority over prediction markets and that the agency would defend designated contract markets (DCMs) against state efforts to abolish federal laws or apply state anti-gambling rules. The CFTC also plans a unified federal compliance framework, while committee members debated manipulation, consumer protection, self-certification, contracts linked to public statements and exchange responsibility. Multicoin Capital co-founder Tushar Jain proposed safe harbors for emerging derivatives, compliant DeFi privacy tools and perpetual futures linked to pre-IPO companies including OpenAI and Anthropic. The proposals remain at an early discussion stage and could face scrutiny from the Securities and Exchange Commission.