The Commodity Futures Trading Commission is leveraging artificial intelligence and automation to tackle its expanding responsibilities, including the supervision of cryptocurrency and prediction markets, according to Chairman Mike Selig's testimony before Congress. Despite a significant decline in the agency's workforce under the Trump administration, with about a quarter of staff members leaving since 2025, the CFTC is relying on technological advancements to streamline its operations. Selig noted that AI tools, such as Microsoft's Copilot, have been instrumental in enhancing productivity and facilitating investigations.
When questioned about the impact of staffing cuts on the agency's efficiency, Selig asserted that the CFTC is operating more effectively and efficiently. The House Agriculture Committee expressed concerns about the agency's capacity to regulate the rapidly growing digital asset and prediction markets, with Chairman Glenn 'GT' Thompson seeking assurance that Selig would request additional support if needed. Selig confirmed that he would do so, emphasizing that enforcing market regulations is a top priority.
The CFTC's budget request for the upcoming year includes a modest increase in enforcement staff, from 105 to 108 personnel, which still falls short of the 140 staff members the division had in 2025. 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 prominent assets like bitcoin and Ethereum.
The agency is also asserting its jurisdiction over prediction markets, which have experienced significant growth and have been marred by allegations of insider trading. Selig acknowledged that numerous investigations are ongoing, although he declined to provide specifics. The CFTC is working to establish a framework for regulating prediction markets, with a preliminary rulemaking process underway. The agency's efforts to police these markets have drawn scrutiny, particularly with regards to the potential for insider trading and market manipulation.
Representative Angie Craig, the committee's top Democrat, argued that the agency's workforce is overstretched, emphasizing the need for additional staff, funding, and clear statutory authority to effectively regulate the rapidly evolving digital asset and prediction markets.