The US Commodity Futures Trading Commission is leveraging artificial intelligence and automation to cope with significant new regulatory responsibilities, according to Chairman Mike Selig's congressional testimony, despite a substantial decline in the agency's workforce under President Donald Trump's administration. Since 2025, approximately a quarter of the CFTC's staff has departed, in line with Trump's demands for federal workforce reductions. However, the CFTC is also tasked with overseeing burgeoning cryptocurrency and prediction markets.
Selig emphasized the importance of AI tools in surveillance and investigations, citing the use of Microsoft's Copilot AI as a key productivity aid. When questioned about staff declines, Selig asserted that the agency is operating more efficiently. Committee Chairman Glenn 'GT' Thompson noted the significant responsibilities being placed on the CFTC, including digital assets and prediction markets, and sought assurance that Selig would request additional qualified staff if needed.
Selig confirmed this, stating that proper market enforcement is a top priority. The CFTC's budget request for the next year includes only three additional enforcement staff, which would still leave the division about 23% short of its 2025 personnel levels.
The Digital Asset Market Clarity Act, currently being worked on by the Senate, would elevate the CFTC's role in non-securities crypto trading, including transactions in assets like bitcoin and Ethereum's ether. The agency is also claiming jurisdiction over prediction markets, such as those operated by Polymarket and Kalshi, which have grown from millions to billions of dollars in a year. Selig acknowledged numerous ongoing investigations in prediction markets but did not provide specifics. He emphasized the regulated platforms' role in preventing insider trading, fraud, and market manipulation, with the CFTC serving as a secondary line of defense.
The chairman reiterated the agency's zero-tolerance policy for illicit market activity. Representative Angie Craig argued that the agency's workforce is overstretched, particularly given its role as primary regulator of two rapidly growing and volatile markets.
Craig emphasized the need for the CFTC to receive adequate staff, funding, and statutory authority to perform its duties. The regulator's personnel declines include the commission itself, which is supposed to have five members but currently consists of only Chairman Selig. Selig was questioned about proceeding with major rules as a one-person commission and indicated that he would move forward with new regulations.
The CFTC is pursuing a preliminary rule process for US prediction markets, and Selig has also promoted policy initiatives in crypto. Committee Chairman Thompson announced plans to send a letter to the White House, encouraging the prompt filling of commissioner positions with CFTC nominees from both parties.