The US Commodity Futures Trading Commission is embracing artificial intelligence to boost its regulatory capabilities, according to Chairman Mike Selig's testimony before Congress. Despite a significant decline in the agency's workforce under the Trump administration, with about a quarter of staff leaving since 2025, the CFTC is leveraging AI tools like Microsoft's Copilot to enhance productivity. Selig emphasized that these technologies will be instrumental in monitoring and investigating the rapidly growing crypto and prediction markets.
The agency is tasked with regulating these new areas, with Selig noting that 'numerous investigations' are underway in prediction markets, although he did not provide specifics. The CFTC's budget request for the upcoming year includes a modest increase in enforcement staff, from 105 to 108 people, still short of the 140 personnel the division had in 2025. The Senate's Digital Asset Market Clarity Act, currently in the works, would place the CFTC at the forefront of regulating non-securities crypto trading, encompassing assets like bitcoin and Ethereum.
The agency is also asserting its jurisdiction over prediction markets, which have seen exponential growth and raised concerns about insider trading. Selig acknowledged the challenges posed by these markets, stating that the CFTC has a 'zero tolerance' policy for illicit activities and is actively reviewing contracts to prevent market manipulation.
However, Representative Angie Craig argued that the agency's workforce is overstretched, particularly given its role as the primary regulator of two of the fastest-growing and most volatile markets. The committee's top Democrat emphasized the need for the CFTC to receive adequate staffing, funding, and statutory authority to effectively perform its duties.
The White House has been urged to fill the vacant commissioner positions on the CFTC, with Chairman Glenn 'GT' Thompson and Representative Craig planning to send a letter to encourage prompt action.