The US Commodity Futures Trading Commission is embracing artificial intelligence and automation to tackle its expanding oversight duties, according to Chairman Mike Selig's congressional testimony, despite a substantial decline in the agency's workforce under the Trump administration. With approximately a quarter of the CFTC's staff having departed since 2025, the agency is leveraging AI tools like Microsoft's Copilot to enhance productivity and support investigations into the rapidly growing cryptocurrency and prediction markets.
Chairman Selig assured lawmakers that the CFTC is operating more efficiently, with AI playing a crucial role in surveilling and investigating these markets. The agency is also asserting its jurisdiction over prediction markets, including those operated by Polymarket and Kalshi, which have experienced exponential growth.
Selig acknowledged the need for proper enforcement and confirmed that numerous investigations are ongoing in the prediction markets, although he declined to provide specifics. The CFTC is working to establish regulatory frameworks for these emerging markets, with Selig emphasizing the agency's zero-tolerance policy towards illicit activities. However, concerns have been raised about the agency's capacity to effectively regulate these markets, given its reduced workforce and limited resources.