The US Commodity Futures Trading Commission is embracing artificial intelligence and automation to address its growing oversight responsibilities, according to Chairman Mike Selig's congressional testimony, despite a significant decline in the agency's workforce under the Trump administration. With about a quarter of the CFTC's staff having left since 2025, the agency is relying on AI tools like Microsoft's Copilot to enhance productivity and support investigations. Selig emphasized that the CFTC is 'running more efficiently and effectively' despite staffing cuts, with AI playing a crucial role in surveilling and investigating markets.
The agency is also pursuing a preliminary rule process to establish guardrails for US prediction markets and has initiated numerous investigations into potential insider trading and market manipulation. However, concerns have been raised about the agency's ability to effectively regulate the rapidly growing crypto and prediction markets with its current staffing levels, prompting calls for increased funding and personnel to support the CFTC's expanded role.