The US Commodity Futures Trading Commission is embracing artificial intelligence and automation to cope with significant new responsibilities, including the regulation of cryptocurrency and prediction markets, according to Chairman Mike Selig's testimony before Congress. Despite a substantial decline in the agency's workforce under the Trump administration, with about a quarter of staff leaving since 2025, Selig emphasized the importance of AI in enhancing efficiency and effectiveness. The CFTC is leveraging tools like Microsoft's Copilot AI to streamline workflows and support investigations. Selig assured lawmakers that the agency is prioritizing enforcement and will request additional resources if needed.
The CFTC is currently overseeing the rapidly growing crypto and prediction markets, with the potential for further expansion under the proposed Digital Asset Market Clarity Act. The agency is also tackling concerns around insider trading in prediction markets, with Selig confirming numerous ongoing investigations. While some lawmakers expressed concerns about the agency's stretched resources, Selig remains committed to moving forward with rulemaking and regulatory initiatives, including setting guardrails for US prediction markets and advancing policy in crypto.