The Commodity Futures Trading Commission is leveraging artificial intelligence and automation to tackle its expanded oversight duties, according to testimony from Chairman Mike Selig, despite a significant decline in the agency's workforce under the Trump administration. Approximately a quarter of the CFTC's staff has departed since 2025, following demands for federal workforce reductions.
However, the agency is also tasked with regulating the rapidly growing cryptocurrency and prediction markets. Selig noted that AI tools, such as Microsoft's Copilot, are being utilized to enhance productivity and support investigations. When questioned about staffing declines, Selig asserted that the agency is operating more efficiently and effectively.
The House Agriculture Committee Chairman, Glenn 'GT' Thompson, expressed concerns about the agency's capacity to handle its increased responsibilities, particularly with regards to digital assets and prediction markets. Selig assured the committee that he would request assistance if needed.
The CFTC is currently pursuing a preliminary rule process to establish guidelines for the US prediction markets, and Selig has also initiated policy initiatives in the crypto space. The agency's budget request for the upcoming year includes a modest increase in enforcement staff, from 105 to 108 people, which still falls short of the 140 personnel the division had in 2025.
The Digital Asset Market Clarity Act, currently being worked on by the Senate, would grant the CFTC a central role in overseeing non-securities crypto trading, including transactions involving prominent assets like bitcoin and Ethereum. The agency is also claiming jurisdiction over prediction markets, such as those operated by Polymarket and Kalshi, which have experienced rapid growth. Selig's predecessor, Rostin Behnam, had previously argued that the agency required more personnel to effectively oversee crypto and prediction markets. During Selig's tenure, the prediction markets have faced accusations of insider trading, with some cases being addressed by the firms themselves.
The chairman acknowledged 'numerous ongoing investigations' in the prediction markets but declined to provide further details. He emphasized that regulated platforms are the primary line of defense against illicit activities, while the CFTC serves as a secondary line of defense.
The agency has a 'zero tolerance' policy for market manipulation and insider trading, with Selig stating that offenders will face the full force of the law. However, Representative Angie Craig, the committee's top Democrat, argued that the agency's workforce is overstretched, particularly given its role as the primary regulator of two rapidly growing and volatile markets. Craig emphasized the need to provide 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 supposed to have five members but has been left with only Selig.
The chairman was questioned about proceeding with major rules as a one-person commission, to which he replied that he cannot slow down the rulemaking process for the sake of the American people. Thompson and Craig plan to send a letter to the White House, urging them to fill the vacant commissioner positions with nominees from both parties.