The US Commodity Futures Trading Commission is embracing artificial intelligence and automation to tackle its growing oversight responsibilities, as stated by Chairman Mike Selig in his congressional testimony. Despite a significant decline in the agency's workforce under the Trump administration, with about a quarter of the staff leaving since 2025, the CFTC is tasked with regulating the rapidly expanding cryptocurrency and prediction markets. Selig emphasized the importance of AI tools, such as Microsoft's Copilot, in enhancing the agency's surveillance and investigative capabilities.
When questioned about the staff reductions, Selig assured lawmakers that the agency is operating more efficiently and effectively. The committee's chairman, Glenn 'GT' Thompson, expressed concerns about the agency's capacity to handle its increased workload and requested assurance that Selig would seek additional support if needed. Selig confirmed that proper market enforcement is a top priority and acknowledged the need for more resources. The Digital Asset Market Clarity Act, currently being considered by the Senate, would grant the CFTC a central role in overseeing non-securities crypto trading, including transactions involving leading assets like bitcoin and Ethereum.
The agency is also asserting its jurisdiction over prediction markets, which have grown significantly in recent years. Selig's predecessor, Rostin Behnam, had previously argued that the agency required more personnel to effectively oversee the crypto market.
During Selig's tenure, the prediction markets have faced accusations of insider trading, with some cases being addressed by the firms themselves. The chairman acknowledged multiple ongoing investigations into these markets but declined to provide further details. He emphasized the importance of regulated platforms in preventing insider trading, fraud, and market manipulation, while the CFTC serves as a secondary line of defense.
Selig reiterated the agency's 'zero tolerance' policy towards illicit market activity, warning that those engaging in such behavior would face the full force of the law. However, Representative Angie Craig expressed concerns that the agency's workforce is overstretched, particularly given its role as the primary regulator of two rapidly growing and volatile markets.
Craig argued that the CFTC requires additional staff, funding, and clear statutory authority to effectively perform its duties. The regulator's personnel declines include the commission itself, which is currently comprised of only Selig, despite being legally required to have five members, including two from the minority party. Selig was questioned about the impact of this on the agency's rulemaking process, and he indicated that he would proceed with major rules despite the commission's reduced membership. The CFTC is currently pursuing a preliminary rule process to establish guardrails for US prediction markets, and Selig has also initiated policy initiatives in the crypto space.
Thompson announced that he and Craig would be sending a letter to the White House, urging them to promptly fill the vacant commissioner positions with nominees from both parties.