The US Commodity Futures Trading Commission is leveraging artificial intelligence and automation to tackle its expanded oversight responsibilities, according to Chairman Mike Selig's congressional testimony, despite a significant decline in the agency's workforce under the Trump administration. Approximately a quarter of the CFTC's staff has departed since 2025, due to President Trump's demands for federal workforce reductions. However, the CFTC is also being tasked with regulating the rapidly growing cryptocurrency and prediction markets. Selig noted that "AI tools will be instrumental in surveillance and investigations, and we are integrating them into our workflows," citing the widespread use of Microsoft's Copilot AI tool as a productivity aid.
When questioned about staff declines, Selig asserted that the agency is "operating more efficiently and effectively." The House Agriculture Committee Chairman, Glenn 'GT' Thompson, expressed concern about the agency's capacity to handle its new responsibilities, given the staffing cuts. Selig assured the committee that he would request assistance if needed.
The CFTC is currently pursuing a preliminary rule process to establish guidelines for US prediction markets, and Selig has also initiated policy initiatives in the crypto space. The agency's budget request for the upcoming year includes a request for only three additional enforcement staff, which would still leave the division approximately 23% short of its 2025 personnel levels. 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, including transactions involving leading assets like bitcoin and Ethereum's ether.
The agency is also asserting its jurisdiction over prediction markets, such as those operated by Polymarket and Kalshi, which have experienced significant growth. Selig acknowledged "numerous ongoing investigations" in the prediction markets but declined to provide further details.
He emphasized that regulated platforms are the primary line of defense against insider trading, fraud, and market manipulation, while the CFTC serves as a secondary line of defense. The chairman reiterated the agency's "zero tolerance" policy for illicit market activity, stating that those engaging in such behavior would face the full force of the law.
However, Representative Angie Craig, the committee's top Democrat, 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 to provide the CFTC with sufficient staff, funding, and statutory authority to perform its duties effectively.