The US Commodity Futures Trading Commission is leveraging artificial intelligence and automation to manage its expanded responsibilities, according to Chairman Mike Selig's congressional testimony, despite a significant decline in the agency's workforce under President Donald Trump's administration. Since 2025, approximately a quarter of the CFTC's staff has departed, as per agency records, due to Trump's demands for federal workforce reductions. However, the CFTC is also tasked with regulating the rapidly growing cryptocurrency and prediction markets. Selig stated that AI tools, such as Microsoft's Copilot, will be instrumental in surveilling and investigating these markets, and the agency is incorporating them into its workflows.
When questioned about the staff declines, 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 ability to manage its growing responsibilities and sought assurance that Selig would request additional support if needed.
Selig confirmed that he would do so. The CFTC is currently overseeing the development of the Digital Asset Market Clarity Act, which would grant the agency a central role in regulating non-securities crypto trading, including transactions involving bitcoin and Ethereum.
The agency is also claiming jurisdiction over prediction markets, such as Polymarket and Kalshi, which have experienced rapid growth. Selig's predecessor, former Chairman Rostin Behnam, had argued that the agency required more personnel to effectively oversee the crypto market. During Selig's tenure, the prediction markets have faced accusations of insider trading, with some cases being addressed by the firms themselves. The chairman acknowledged numerous ongoing investigations in the prediction markets but did not provide further details.
He emphasized that regulated platforms are the primary line of defense against illicit activities, while the CFTC serves as a secondary line of defense. Selig noted that the agency has a 'zero tolerance' policy for market manipulation and insider trading. However, Representative Angie Craig, the committee's top Democrat, argued that the agency's workforce is overstretched, particularly given its role in regulating the rapidly growing and volatile crypto and prediction markets. Craig emphasized the need for the CFTC to receive adequate staffing, funding, and statutory authority to perform its duties effectively.
The regulator's personnel declines include the commission itself, which is supposed to have five members but currently has only one, Selig. The chairman was questioned about the impact of this on the agency's rulemaking process and stated that he would proceed with new regulations despite the lack of commissioners. The CFTC is currently pursuing a preliminary rule process to establish guidelines for the US prediction markets, and Selig has also initiated policy initiatives in the crypto space. Thompson announced that he and Craig would be sending a letter to the White House to encourage the prompt filling of the vacant commissioner positions with nominees from both parties.