The US Commodity Futures Trading Commission is turning to artificial intelligence and automation to tackle its growing workload, according to Chairman Mike Selig's testimony before Congress. Despite a significant decline in staff under the Trump administration, the CFTC is tasked with regulating the rapidly expanding cryptocurrency and prediction markets. Selig emphasized that AI tools, such as Microsoft's Copilot, will aid in surveillance and investigations, allowing the agency to operate more efficiently.
However, committee members expressed concerns about the agency's reduced workforce and its ability to effectively oversee these new markets. Selig acknowledged that numerous investigations are ongoing in the prediction markets, but declined to provide further details.
The CFTC is seeking to establish clear guidelines for the US prediction markets and is pursuing policy initiatives in the crypto space. The agency's budget request for next year includes a modest increase in enforcement staff, but lawmakers argue that more resources are needed to ensure effective regulation of these emerging markets.