The US Commodity Futures Trading Commission (CFTC) is embracing artificial intelligence (AI) and automation to tackle its expanding regulatory responsibilities, according to Chairman Mike Selig's congressional testimony. Despite a significant decline in the agency's workforce under President Donald Trump, with about a quarter of staff leaving since 2025, the CFTC is tasked with overseeing the rapidly growing cryptocurrency and prediction markets.
Selig emphasized the importance of AI in enhancing surveillance and investigations, citing the use of Microsoft's Copilot AI tool as a productivity aid. When questioned about staff reductions, Selig maintained that the agency is operating more efficiently. Committee Chairman Glenn 'GT' Thompson expressed concerns about the CFTC's ability to handle its increased workload, particularly with the introduction of digital assets and prediction markets.
Selig assured the committee that he would request assistance if needed. The CFTC is currently pursuing a preliminary rule process to establish guidelines for US prediction markets, and Selig has also initiated policy initiatives in the crypto space. The agency's budget request for the next year includes only three additional enforcement staff, which is still 23% shy of the 140 personnel the division had in 2025.
The Digital Asset Market Clarity Act, currently being worked on by the Senate, would elevate the CFTC's role in regulating non-securities crypto trading. Selig acknowledged 'numerous investigations ongoing' in prediction markets but did not provide further details. He emphasized the regulated platforms' role as the first line of defense against insider trading, fraud, and market manipulation, with the CFTC serving as a second line of defense.
Representative Angie Craig argued that the agency's workforce is stretched too thin, particularly given its role as the primary regulator of two of the fastest-growing and most volatile markets. The committee's top Democrat stressed the need to provide the CFTC with sufficient staff, funding, and statutory authority to perform its duties effectively.