The US Commodity Futures Trading Commission is embracing artificial intelligence and automation to tackle its expanding oversight responsibilities, as outlined by Chairman Mike Selig in 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 investigate illicit activities. Selig emphasized that the agency is operating more efficiently, with AI playing a crucial role in surveilling and investigating markets.
The CFTC is tasked with regulating the rapidly growing crypto and prediction markets, with Chairman Selig acknowledging numerous ongoing investigations in the latter. The agency is adopting a zero-tolerance policy towards insider trading, fraud, and market manipulation, with Selig stressing that anyone engaging in such behavior will face the full force of the law.
However, concerns have been raised about the agency's stretched workforce, with Representative Angie Craig arguing that the CFTC needs more staff, funding, and clear statutory authority to effectively regulate these volatile markets.