The US Commodity Futures Trading Commission is leveraging artificial intelligence and automation to address the challenges posed by its expanding oversight responsibilities, according to testimony from Chairman Mike Selig, despite a substantial decline in the agency's workforce under the Trump administration. Since 2025, approximately a quarter of the CFTC's staff has departed, driven by President Trump's demands for significant reductions in the federal workforce. However, the CFTC is simultaneously being tasked with regulating the rapidly growing cryptocurrency and prediction markets.
Chairman Selig noted that AI tools are being utilized to enhance surveillance and investigations, citing the widespread adoption of Microsoft's Copilot AI tool as a key productivity aid. When questioned about the staff reductions, Selig asserted that the agency is operating more efficiently and effectively. The House Agriculture Committee Chairman, Glenn 'GT' Thompson, expressed concerns about the agency's capacity to handle its growing responsibilities, particularly in the areas of digital assets and prediction markets. Selig assured the committee that he would request additional support if needed.
The CFTC is currently pursuing a preliminary rule-making 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 upcoming year includes a proposal for only three additional enforcement staff, which would still leave the division approximately 23% short of its 2025 personnel levels. The Digital Asset Market Clarity Act, currently being considered by the Senate, would elevate the CFTC's role in overseeing non-securities crypto trading, including transactions involving prominent assets such as bitcoin and Ethereum. The agency is also asserting its jurisdiction over prediction markets, including those operated by leading firms like Polymarket and Kalshi, which have experienced significant growth in recent years.
Selig acknowledged the existence of numerous ongoing investigations into prediction markets, although he declined to provide further details. He emphasized the importance of regulated platforms in preventing insider trading, fraud, and market manipulation, while also highlighting the CFTC's role as a secondary line of defense.
The committee's top Democrat, Representative Angie Craig, argued that the agency's workforce is overstretched, particularly given its role as the primary regulator of two rapidly growing and volatile markets. Craig stressed the need for the CFTC to receive adequate staffing, funding, and statutory authority to effectively perform its duties. The White House has been criticized for leaving the commission with a solitary member, Chairman Selig, despite the law requiring a five-member commission with two representatives from the minority party. Selig was questioned about the impact of this on the agency's rule-making processes, and he indicated that he would proceed with major rules as a one-person commission, stating that slowing down the rule-making process would be detrimental to the American people.
The committee chairman, Thompson, announced plans to send a letter to the White House, urging them to promptly fill the vacant commissioner positions with nominees from both parties.