The US Commodity Futures Trading Commission is leveraging artificial intelligence and automation to tackle its expanding oversight responsibilities, according to Chairman Mike Selig's congressional testimony, despite a significant decline in the agency's workforce under the Trump administration. With approximately a quarter of the CFTC's staff departing since 2025, the agency faces new challenges in regulating cryptocurrency and prediction markets. Selig emphasized that AI tools, such as Microsoft's Copilot, will play a crucial role in surveilling and investigating these markets, allowing the CFTC to operate more efficiently. The agency is currently handling numerous investigations into prediction markets, with a focus on preventing insider trading and market manipulation.
Despite concerns about staffing levels, Selig asserted that the CFTC is committed to enforcing market regulations, with a 'zero tolerance' policy for illicit activities. The agency is pursuing new regulations for prediction markets and has requested additional funding to support its enforcement efforts.