The US Commodity Futures Trading Commission is leveraging artificial intelligence and automation to navigate its expanded oversight responsibilities, according to Chairman Mike Selig's testimony before Congress, as the agency faces a substantial decline in workforce under the Trump administration. Approximately a quarter of the CFTC's staff has departed since 2025, amidst demands for federal workforce reductions. However, the agency is also tasked with regulating the rapidly growing cryptocurrency and prediction markets.
Selig emphasized the utility of AI tools, such as Microsoft's Copilot, in enhancing surveillance and investigative capabilities. When questioned about staffing declines, Selig asserted that the agency is operating more efficiently and effectively. Committee Chairman Glenn 'GT' Thompson expressed concerns about the agency's capacity to handle its expanded role, particularly in digital assets and prediction markets, and sought assurance that Selig would request assistance if needed. Selig confirmed that he would do so.
The CFTC is prioritizing enforcement, although its budget request for the upcoming year includes only a modest increase in enforcement staff. The Digital Asset Market Clarity Act, currently under consideration in the Senate, would position the CFTC as a central authority over non-securities crypto trading, encompassing transactions in prominent assets like bitcoin and Ethereum.
The agency is also asserting its jurisdiction over prediction markets, which have experienced significant growth and drawn scrutiny due to allegations of insider trading. Selig acknowledged numerous ongoing investigations in prediction markets but declined to provide specifics. He emphasized the regulated platforms' role as the primary line of defense against illicit activities and the CFTC's commitment to a 'zero tolerance' policy.
Representative Angie Craig argued that the agency's workforce is overstretched, particularly given its role as the primary regulator of two rapidly expanding and volatile markets. Craig advocated for providing the CFTC with the necessary staff, funding, and statutory authority to fulfill its responsibilities. The regulator's personnel declines include the commission itself, which is legally required to have five members but currently consists of only Chairman Selig.
Selig was questioned about proceeding with major rules as a one-person commission and indicated that he would move forward with new regulations. The CFTC is pursuing a preliminary rule process to establish guidelines for US prediction markets, and Selig has also promoted policy initiatives in crypto. Committee Chairman Thompson announced plans to send a letter to the White House, urging prompt filling of the commissioner positions with nominees from both parties.