During a speech at the Brookings Institution on September 3, Johnson pointed out that some companies are offering contracts linked to real-world events, such as elections or sports games, with added leverage, and are targeting people who may not fully understand the risks.

She warned, “As of today, we have too few guardrails and too little visibility into the prediction market landscape”.

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A key issue for Johnson was the CFTC’s lack of action on event-based contracts. She said the agency still has not implemented a rule to explain how such contracts should be handled, which has allowed them to grow without proper supervision.

She also said firms sometimes apply for licenses under the impression that they will stick to traditional products. However, after they are approved, they offer prediction contracts instead. In some cases, companies even sell or rent out these licenses to others.

Johnson stressed that newer firms, especially those in the crypto and prediction markets, often lack strong systems in place to manage risk or comply with regulations.

Rather than holding back innovation, she said regulators should focus on building clear expectations early on. She noted:

If we fail to rightly prioritize consumer protection or market stability on the road to capturing the benefits of innovation or growth, the results can be devastating.

On August 28, the CFTC announced new rules that may permit international crypto exchanges to legally serve US customers. What do these rules cover? Read the full story.

Her decision to depart comes after she previously stated that she would not remain in the position through the full term, which ends in 2026.

She released a press release on August 26 expressing appreciation for the opportunity to serve. Johnson mentioned that she is exploring other ways to contribute to the public good, particularly in areas that support consumers and the financial system.

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Johnson also emphasized the importance of continued support for CFTC staff. She stated that the agency must be equipped to manage large shifts in financial systems and trading practices, especially when those changes impact market structure.

She reiterated her view that digital asset firms should be held to clear rules, with oversight frameworks that promote both innovation and responsibility.

During her tenure at the CFTC, Johnson focused on topics that included cybersecurity and the impact of artificial intelligence (AI) on financial markets.

Appointed by President Joe Biden, Johnson joined the CFTC in March 2022 and was the only Democratic commissioner serving at the time. Once she steps down, only Acting Chair Caroline Pham will remain in office.

On August 9, Bo Hines announced his resignation as head of the White House’s crypto council. What did he say? Read the full story.