The US Commodity Futures Trading Commission is leveraging artificial intelligence and automation to address its increased oversight duties, according to Chairman Mike Selig's congressional testimony, 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, due to demands for federal workforce reductions. However, the agency is also being tasked with regulating the rapidly growing cryptocurrency and prediction markets.
Selig stated that AI tools will be instrumental in surveillance and investigations, and the CFTC is integrating these tools into its workflows. He cited the widespread use of Microsoft's Copilot AI tool as a productivity aid. When questioned about staff declines, Selig asserted that the agency is operating more efficiently and effectively. The House Agriculture Committee Chairman, Glenn 'GT' Thompson, expressed concern about the agency's ability to handle its expanded responsibilities, particularly with regards to digital assets and prediction markets.
Selig assured the committee that he would request assistance if needed. The CFTC is prioritizing market enforcement, although its budget request for the upcoming year includes only a modest increase in enforcement staff.
The agency is also claiming jurisdiction over prediction markets, which have grown significantly in recent years. Selig's predecessor, Rostin Behnam, had argued that the agency required more resources 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 but declined to provide further details. He emphasized the importance of regulated platforms as the first line of defense against illicit activities and the CFTC's role as a second line of defense. Selig stated that the agency has a zero-tolerance policy for market manipulation and insider trading.
However, Representative Angie Craig expressed concerns that the agency's workforce is overstretched, particularly given its role as the primary regulator of two rapidly growing and volatile markets. The committee's top Democrat argued that the CFTC requires additional staff, funding, and statutory authority to effectively perform its duties. The White House has been criticized for leaving the commission with a single member, Chairman Selig, despite the law requiring a five-member commission. Selig was questioned about his plans to proceed with major rules as a one-person commission and stated that he would not slow down the rulemaking process.
The CFTC is pursuing a preliminary rule process to establish guidelines for US prediction markets, and Selig has also initiated policy initiatives in crypto. The committee chair and ranking member plan to send a letter to the White House, encouraging them to fill the vacant commissioner positions with nominees from both parties.