The US Commodity Futures Trading Commission is embracing artificial intelligence to bolster its regulatory efforts, particularly in the areas of cryptocurrency and prediction markets, according to Chairman Mike Selig's testimony before Congress. Despite a significant decline in the agency's workforce under the Trump administration, with about a quarter of staff leaving since 2025, Selig emphasized that AI tools are being utilized to streamline workflows and support investigations.
The CFTC is tasked with regulating the rapidly growing crypto and prediction markets, with Chairman Selig affirming that 'tools such as AI are going to be very helpful in surveilling and bringing the investigations.' The agency is also exploring the use of Microsoft's Copilot AI tool to enhance productivity. When questioned about staff reductions, Selig stated that the CFTC is 'running more efficiently and effectively.' Committee Chairman Glenn 'GT' Thompson expressed concern about the agency's capacity to handle its expanded responsibilities, prompting Selig to assure that he would request additional support if needed.
The CFTC is currently pursuing a preliminary rule process to establish guidelines for US prediction markets and has initiated 'numerous investigations' into potential insider trading and market manipulation. Selig reiterated the agency's 'zero tolerance' policy for illicit activities, emphasizing that offenders 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.
The committee is planning to send a letter to the White House, urging the prompt filling of commissioner positions at the CFTC.