The US Commodity Futures Trading Commission is embracing artificial intelligence and automation to tackle its expanding responsibilities in overseeing cryptocurrency and prediction markets, despite a significant decline in its workforce under the Trump administration. According to Chairman Mike Selig's congressional testimony, about a quarter of the CFTC's staff has left since 2025 due to federal workforce reduction demands. However, the agency is being tasked with regulating rapidly growing areas such as cryptocurrency and prediction markets. Selig stated that AI tools, including Microsoft's Copilot, will be instrumental in surveilling and conducting investigations, and the agency is incorporating these tools into its workflows.
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 concerns about the agency's ability to handle its expanded responsibilities, particularly regarding digital assets and prediction markets. Selig assured the committee that he would request help if needed. The CFTC is currently dealing with numerous investigations into prediction markets, although Selig did not provide specifics.
The agency has a 'zero tolerance' policy for illicit market activities and is actively reviewing contracts to prevent insider trading and market manipulation. Representative Angie Craig argued that the agency's workforce is stretched too thin, given its role as the primary regulator of two rapidly growing and volatile markets. The committee plans to send a letter to the White House, urging them to fill the vacant commissioner positions with nominees from both parties.