CFTC Acting Chairman Pham Outlines a Technology‑Neutral Approach to Digital Assets and Agency Modernization

At the Futures and Derivatives Law Report Digital Asset Leadership Summit, Commodity Futures Trading Commission (CFTC) Acting Chairman Caroline D. Pham described a measured and practical approach to digital assets and market oversight. Drawing on experience in both government and industry, Acting Chairman Pham emphasized technology‑neutral, principles‑based regulation, a recommitment to “regular order,” and a renewed focus on organizational performance to support the CFTC’s mission. Her remarks focused on two parallel priorities: accelerating responsible innovation in crypto markets through workable market structure and pilot programs, and investing in the CFTC’s people, processes and tools to support durable policy outcomes.

A technology‑neutral path for crypto market structure

Acting Chairman Pham reiterated that the CFTC’s statutory framework is already well‑suited to address emerging technologies because it is principles‑based and focused on activities and risks rather than specific technical implementations. In her view, the “wrapper” of blockchain or tokenization does not change the underlying product or risk profile. The task is identifying, measuring and controlling risk within familiar governance and compliance frameworks.  That technology‑neutral stance, she noted, enables the agency to adapt existing rules rather than reinvent them, while still modernizing legacy requirements where needed.

Turning to concrete next steps, Acting Chairman Pham highlighted several near‑term priorities.  She described work underway to define a clear trade workflow for spot crypto in listed markets, with a view to obtaining public feedback and moving responsibly but expeditiously.[1] She also outlined a prospective digital asset markets pilot program, potentially advanced through exemptive orders and public notice‑and‑comment, that would specify eligibility criteria, market structure parameters and data collection to evaluate outcomes over a fixed period before sunsetting. In collateral management, she pointed to a tokenized collateral initiative, including stablecoins, and encouraged robust industry engagement to surface operational details and risk controls necessary for safe deployment.[2]

Acting Chairman Pham framed these efforts within a broader emphasis on open engagement, data‑driven policymaking and interagency cooperation. She cited priorities such as portfolio margin and targeted rule harmonization, which have significant implications for liquidity and capital efficiency, as examples where the CFTC aims to start from first principles and design modern market structures without being constrained by legacy assumptions.[3] The message was clarity, collaboration and speed. The CFTC intends to move quickly where the record supports it, while using pilots and exemptions to generate evidence for broader implementation.

Building the CFTC to deliver with a focus on people, process and modernization 

An emphasis on organizational performance was equally prominent in Acting Chairman Pham’s remarks. She described a transformation initiative launched in January that focuses on governance, culture, talent, operations and excellence, intending to strengthen the agency’s execution capacity. Through optimization and savings, the CFTC funded performance‑based bonuses for roughly 17 percent of staff, a first for the agency, signaling that excellence will be recognized and rewarded. Those savings also support a hiring plan designed to deepen expertise in core areas and to stand up centers of excellence for digital assets and artificial intelligence, enhancing capacity building across the Commission. 

Modernization of supervisory tools is another focus. Acting Chairman Pham noted the agency’s transition from a 1990s‑era legacy surveillance platform to a new market surveillance system, reflecting the imperative to equip staff with technology that can keep pace with today’s markets. She also credited advisory work from market participants, including a detailed mapping of rules that may require updates to enable digital asset use cases in collateral management, settlements, recordkeeping and related areas, technical but important adjustments that can support safer and more efficient operations. Throughout, Acting Chairman Pham returned to process discipline, including regular order, robust administrative records and public engagement as the foundation for durable policy.

The takeaway from the Summit was clear: the CFTC is positioning itself to move from concept to implementation, responsibly, transparently and with measurable outcomes.

[1] See Katten’s Quick Reads coverage of the CFTC’s Listed Spot Crypto Initiative here.

[2] See Katten’s Quick Reads coverage of the CFTC-SEC Joint Staff Statement on the Project Crypto-Crypto Sprint here.

[3] See Katten’s Quick Reads coverage of the recent SEC-CFTC Harmonization Roundtable here.