The US Commodity Futures Trading Commission is embracing artificial intelligence and automation to tackle its expanding regulatory duties, 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, the CFTC is leveraging AI tools like Microsoft's Copilot to enhance productivity and efficiency. Selig emphasized that the agency is 'running more efficiently and effectively' and that AI will play a crucial role in monitoring and investigating markets. The CFTC is facing new responsibilities in regulating cryptocurrency and prediction markets, with Chairman Selig acknowledging 'numerous investigations ongoing' in the latter.
He stressed the importance of proper enforcement, which is a 'top priority,' and assured lawmakers that the agency will request additional support if needed. The Digital Asset Market Clarity Act, currently being worked on by the Senate, would elevate the CFTC's role in overseeing non-securities crypto trading.
Selig's predecessor had argued that the agency required more resources to effectively police these markets. The prediction markets have recently faced accusations of insider trading, prompting the CFTC to take a 'zero tolerance' stance on illicit activity.
While Selig acknowledged the agency's workforce is stretched thin, he expressed commitment to moving forward with rulemaking, including setting up guardrails for US prediction markets and pursuing policy initiatives in crypto. Lawmakers have expressed concerns about the agency's capacity to handle its growing responsibilities, with Representative Angie Craig emphasizing the need for adequate staffing, funding, and statutory authority.