The US Commodity Futures Trading Commission is leveraging artificial intelligence and automation to tackle its growing oversight responsibilities, as stated by Chairman Mike Selig in his congressional testimony, despite a significant decline in the agency's workforce under the Trump administration. Since 2025, about a quarter of the CFTC's staff has left due to President Trump's demands for federal workforce reductions, according to agency records. However, the CFTC is now tasked with regulating the rapidly expanding cryptocurrency and prediction markets.
Selig noted that AI tools, such as Microsoft's Copilot AI, will be instrumental in surveillance and investigations, and are being integrated into various workflows. When questioned about the staff decline, Selig stated that the agency is operating more efficiently and effectively.
Committee Chairman Glenn 'GT' Thompson expressed concerns about the CFTC's ability to handle its new responsibilities, given the staffing cuts, and sought assurance that Selig would request help if needed. Selig confirmed that he would do so. The CFTC chief emphasized that proper market enforcement is a top priority, although the agency's budget request for the next year only includes three additional enforcement staff, which would still be 23% short of the 140 staff members the division had in 2025.
The Digital Asset Market Clarity Act, currently being worked on by the Senate, would grant the CFTC a central role in overseeing non-securities crypto trading, including transactions in leading assets like bitcoin and Ethereum. The agency is also claiming jurisdiction over prediction markets, such as those operated by Polymarket and Kalshi, which have grown from millions to billions of dollars in a year. Selig's predecessor, former Chairman Rostin Behnam, had argued that the agency needed more resources to oversee crypto and prediction markets. During Selig's tenure, the prediction markets have faced accusations of insider trading, with some cases being addressed by the firms themselves.
The chairman acknowledged numerous ongoing investigations in the prediction markets but declined to provide specifics. He emphasized that regulated platforms are the first line of defense against insider trading, fraud, and market manipulation, while the CFTC serves as a second line of defense. Selig stated that the agency has a 'zero tolerance' policy for illicit market activity and will take action against those who engage in such behavior.
However, Representative Angie Craig argued that the agency's workforce is stretched too thin, 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. The regulator's personnel declines include the commission itself, which is supposed to have five members but currently only has Selig. The chairman was questioned about proceeding with major rules as a one-person commission and stated that he will move forward with new regulations, including a preliminary rule process for US prediction markets.
Committee Chairman Thompson announced plans to send a letter to the White House, along with Craig, to encourage the prompt filling of commissioner positions with CFTC nominees from both parties.