The U.S. Commodity Futures Trading Commission is leveraging artificial intelligence and automation to cope with significant new responsibilities, including the regulation of cryptocurrency and prediction markets, according to testimony from Chairman Mike Selig.
Despite a substantial decline in the agency's workforce, Selig emphasized that AI tools, such as Microsoft's Copilot, are being integrated into workflows to enhance surveillance and investigation capabilities. The CFTC is facing expanded duties, including the oversight of digital assets and prediction markets, which have drawn scrutiny over insider trading allegations. Selig acknowledged numerous ongoing investigations in prediction markets, stressing the agency's commitment to enforcing market integrity and its zero-tolerance policy for illicit activities.
However, concerns have been raised about the agency's capacity to effectively regulate these rapidly growing markets with a reduced workforce, prompting calls for increased staffing and funding.