The US Commodity Futures Trading Commission is leveraging artificial intelligence and automation to tackle its burgeoning responsibilities, including the oversight of cryptocurrency and prediction markets, according to Chairman Mike Selig's testimony before Congress. Despite a substantial decline in the agency's workforce under the Trump administration, with about a quarter of staff leaving since 2025, the CFTC is embracing AI tools like Microsoft's Copilot to enhance productivity and facilitate investigations. Selig assured lawmakers that the agency is operating more efficiently and effectively, with AI playing a crucial role in surveilling markets and bringing investigations to fruition. The CFTC is currently dealing with significant new responsibilities, including the potential regulation of non-securities crypto trading and the oversight of rapidly growing prediction markets, which have drawn scrutiny over allegations of insider trading.
Chairman Selig confirmed that numerous investigations are ongoing in the prediction markets but declined to provide specifics. The agency is working to establish clear guardrails for US prediction markets and is pursuing policy initiatives in the crypto space.
Lawmakers have expressed concerns about the agency's staffing levels, with Representative Angie Craig arguing that the CFTC's workforce is overstretched and requires additional funding and statutory authority to effectively regulate the rapidly evolving markets.