The US Commodity Futures Trading Commission is leveraging artificial intelligence and automation to cope with significant new regulatory responsibilities, according to Chairman Mike Selig's congressional testimony. 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 tasked with overseeing burgeoning cryptocurrency and prediction markets. Selig emphasized the importance of AI in surveilling and investigating these markets, noting the agency's use of Microsoft's Copilot AI tool to enhance productivity.
When questioned about staffing cuts, Selig asserted that the agency is operating more efficiently and effectively. The CFTC is currently handling numerous investigations into prediction markets, with Selig acknowledging the need for vigilance against insider trading and market manipulation. However, some lawmakers have expressed concerns that the agency's reduced workforce may hinder its ability to effectively regulate these rapidly growing markets.
The CFTC is pursuing preliminary rules to establish guardrails for US prediction markets and has initiated policy initiatives in the crypto space. Lawmakers have urged the White House to fill vacant commissioner positions to ensure the agency has the necessary resources and authority to fulfill its regulatory role.