The US Commodity Futures Trading Commission is leveraging artificial intelligence and automation to tackle its growing responsibilities, including oversight of cryptocurrency and prediction markets, 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 staff leaving since 2025, Selig emphasized that AI tools are being utilized to enhance surveillance and investigations. The CFTC is facing increased demands to regulate new and rapidly expanding areas, including digital assets and prediction markets, with Chairman Selig acknowledging 'numerous investigations ongoing' in these areas.
The agency's budget request for next year includes only a modest increase in enforcement staff, prompting concerns from lawmakers about the agency's ability to effectively oversee these markets. Selig assured lawmakers that the agency is committed to enforcing market regulations and will seek additional resources if needed.
The Digital Asset Market Clarity Act, currently being worked on in the Senate, would further elevate the CFTC's role in overseeing non-securities crypto trading, while the agency is also asserting its jurisdiction over prediction markets. The CFTC's efforts to regulate these markets have drawn scrutiny, particularly with regards to insider trading and market manipulation, with Selig emphasizing the agency's 'zero tolerance' policy for illicit activity.