U.S. CFTC Chair Announces Enhanced Regulatory Clarity for DeFi, Crypto Derivatives, and Prediction Markets

March 10 (CoinDesk) — Former U.S. Commodity Futures Trading Commission (CFTC) Chair Heath Tarbert said Wednesday the agency is taking new steps to deliver long-awaited regulatory clarity for decentralized finance (DeFi) developers, crypto derivatives, and prediction markets. Speaking this week at the Futures Industry Association’s Boca Raton International Derivatives Conference, Tarbert outlined how U.S. agencies are collaborating more closely to reclaim leadership in the digital asset space. He noted that through joint efforts with U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler, the pair advanced the “Project Open Door” initiative — a sign the CFTC and SEC have put internal disputes behind them. In his remarks, Tarbert reaffirmed the CFTC will issue guidance clarifying how prediction markets (called “event markets” in regulation) can list and trade products under U.S. law. The agency will also launch a rulemaking process to seek public input on its regulatory approach to this fast-growing sector. Tarbert added the CFTC plans to address one of the crypto industry’s most contentious regulatory questions: “For years, there’s been uncertainty over whether software providers trigger CFTC registration requirements,” he stated. “We intend to tackle that issue head-on.” The agency is also addressing the classification of crypto perpetual derivatives — a product holding a significant share of the global crypto market.