The US Commodity Futures Trading Commission is embracing artificial intelligence and automation to tackle its expanded oversight duties, according to Chairman Mike Selig's congressional testimony, despite a significant decline in the agency's workforce under President Donald Trump's administration. Approximately a quarter of the CFTC's staff has departed since 2025, due to federal workforce reduction demands. 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 surveillance and investigations. When questioned about staffing declines, Selig asserted that the agency is operating more efficiently.
The House Agriculture Committee's Chairman Glenn 'GT' Thompson expressed concern about the CFTC's ability 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 prioritizing market enforcement, with a budget request for only three additional enforcement staff, despite being about 23% short of the 140 personnel it 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. 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 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 multiple ongoing investigations in the prediction markets but did not provide specifics. He emphasized the importance of regulated platforms in preventing insider trading, fraud, and market manipulation, while the CFTC serves as a secondary line of defense.
The agency has a 'zero tolerance' policy for illicit market activity, with Selig stating that those engaging in such behavior will face the full force of the law. However, Representative Angie Craig 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 for the CFTC to receive adequate staff, funding, and statutory authority to perform its duties effectively. The regulator's personnel declines include the commission itself, which is supposed to have five members but currently consists of only Selig.
The chairman was questioned about proceeding 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.
Committee Chairman Thompson announced plans to send a letter to the White House, urging them to fill the vacant commissioner positions with nominees from both parties.