The US Commodity Futures Trading Commission is leveraging artificial intelligence and automation to tackle its growing responsibilities in overseeing cryptocurrency and prediction markets, 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 embracing AI tools like Microsoft's Copilot to enhance productivity and efficiency.
Selig noted that 'tools such as AI are going to be very helpful in surveilling and bringing investigations,' and the agency is incorporating AI into its workflows. The CFTC is tasked with regulating rapidly expanding areas, including crypto and prediction markets, with Chairman Selig acknowledging 'numerous investigations ongoing' in prediction markets. However, he emphasized that the agency is committed to enforcing market regulations, with a 'zero tolerance' policy for illicit activities. The CFTC's budget request for next year includes only three additional enforcement staff, which has raised concerns among lawmakers about the agency's ability to effectively oversee these markets.
The Digital Asset Market Clarity Act, currently being worked on by the Senate, would further expand the CFTC's role in non-securities crypto trading. The agency is also asserting its jurisdiction over prediction markets, which have grown significantly in recent years.
Selig's predecessor, former Chairman Rostin Behnam, had argued that the agency needed more resources to effectively oversee crypto and prediction markets. The CFTC's current staffing levels have been criticized by lawmakers, with Representative Angie Craig stating that the agency's workforce is 'stretched too thin.' The committee's top Democrat emphasized the need for the CFTC to have sufficient staff, funding, and statutory authority to effectively regulate these markets.
The White House has been urged to fill the vacant commissioner positions at the CFTC, with Chairman Selig indicating that he will proceed with rulemaking despite the current single-person commission.