Crypto News: CFTC Taps 35 CEOs for IAC Including Coinbase and Polymarket

Key Insights

• Crypto news shows CFTC formed a 35-member IAC with Coinbase and Polymarket CEOs.
• All 4 other CFTC commissioner seats are vacant, leaving Selig as the sole decision maker.
• Only 2 academics out of 35 members advising on regulations for companies they lead.

The Trump administration’s CFTC just created a 35-member advisory committee, as highlighted in today’s crypto news. The Innovation Advisory Committee (IAC) brings together every major crypto CEO.

Brian Armstrong from Coinbase sits at the table. Shayne Coplan from Polymarket made the list. All of them will advise CFTC Chairman Michael Selig on crypto regulation.

The problem is simple. All four other commissioner seats are empty. Selig makes decisions alone with input from the exact people he will regulate.

Crypto News: CFTC Forms a 35-Member IAC

CFTC Chairman Michael Selig announced the Innovation Advisory Committee on Feb. 12. The IAC replaces the old Technology Advisory Committee.

It includes Coinbase CEO Brian Armstrong, Polymarket CEO Shayne Coplan, Robinhood CEO Vlad Tenev, and Ripple CEO Brad Garlinghouse.

Traditional finance giants like CME Group and Nasdaq also joined. Two academics round out the list. Two out of 35 total members.

The crypto news timing matters because Congress is advancing digital asset legislation. The House passed the CLARITY Act last year. The Senate Agriculture Committee advanced its version on Jan. 29. Both bills would grant CFTC formal authority over digital commodity markets.

All four other CFTC commissioner seats currently sit vacant. Selig operates as the sole decision maker. No Democratic commissioner exists to push for consumer protection.

No second Republican exists to offer competing views. The 35 IAC members have direct access to the only person who approves regulations.

Coinbase and Polymarket Seek Different Rules

Coinbase runs a centralized exchange. They need clarity on which crypto tokens qualify as securities versus commodities. They need token listing frameworks. Brian Armstrong has spent years asking for these exact rules.

Polymarket runs prediction markets, letting users bet on elections and sports events. As per crypto news, the US CFTC recently approved Polymarket to operate in the US. Shayne Coplan now sits on the committee advising on prediction market regulations.

The company profits from how permissive those rules become.

Uniswap builds decentralized protocols with no central control. Hayden Adams represents a business model that traditional regulators struggle with. Uniswap wants minimal oversight.

These are fundamentally different needs. Coinbase wants clear lines. Polymarket wants freedom. Uniswap wants to be left alone. As per the crypto news, all three CEOs now advise the same chairman on the same regulations.

Traditional finance executives like Terry Duffy at CME Group want conventional stability. Their perspective clashes with crypto-native builders who see regulation as innovation-killing.

Crypto Industry Writing Its Own Rules

These crypto firms have active businesses before the CFTC. Polymarket holds CFTC approval. Kalshi is fighting a state injunction over prediction markets.

The crypto news showed that Coinbase, Kraken, and Robinhood are positioning for legislation placing them under CFTC oversight. They are regulated entities advising on their own rules.

Selig withdrew Biden-era rules prohibiting political and sports prediction markets on Jan. 29. He ordered staff to draft new permissive event contract rules. The people who profit most from lenient regulations now advise what those rules should contain.

Two academics out of 35 members is a thin representation for consumer protection. Former CFTC Chairman Timothy Massad said the committee’s value depends on what the chairman wants from it.

Better Markets, a consumer advocacy group, criticized Selig, citing his prior work as a crypto industry attorney. His client list included exchanges and blockchain startups before joining the government.

Crypto news showing 35 CEOs advising one chairman with no other commissioners creates obvious questions. The industry is writing rules for itself. Whether that produces clarity or regulatory capture depends on which side you sit.