The US Commodity Futures Trading Commission is embracing artificial intelligence and automation to tackle the significant new responsibilities it faces, according to Chairman Mike Selig's testimony to Congress. Despite a substantial decline in the agency's workforce under the Trump administration, the CFTC is tasked with overseeing the rapidly growing cryptocurrency and prediction markets.

Selig emphasized that AI tools, such as Microsoft's Copilot, are being utilized to enhance productivity and support investigations. When questioned about staffing reductions, Selig asserted that the agency is operating more efficiently and effectively. The committee chairman, Glenn 'GT' Thompson, expressed concerns about the agency's capacity to handle its expanded role and sought assurance that Selig would request assistance if needed. Selig confirmed that he would do so, while also stressing that proper market enforcement remains a top priority.

The Digital Asset Market Clarity Act, currently being considered by the Senate, would position the CFTC as a central authority over non-securities crypto trading, including transactions involving leading assets like bitcoin and Ethereum. The agency is also claiming jurisdiction over prediction markets, which have experienced significant growth and drawn scrutiny over potential insider trading. Selig acknowledged numerous ongoing investigations in this area but did not provide further details.

He emphasized the importance of regulated platforms in preventing illicit activities and stated that the CFTC has a zero-tolerance policy for market manipulation. However, Representative Angie Craig argued that the agency's workforce is overstretched, particularly given its role in regulating two of the fastest-growing and most volatile markets.

Craig advocated for providing the CFTC with sufficient staff, funding, and statutory authority to effectively perform its duties. The regulator's personnel declines include the commission itself, which is currently operating with only one member, Selig. He was questioned about proceeding with major rules as a one-person commission and indicated that he would move forward with new regulations, including a preliminary rule process for US prediction markets.

The committee chairman and ranking member plan to send a letter to the White House, urging prompt filling of the vacant commissioner positions.