The US Commodity Futures Trading Commission is leveraging artificial intelligence and automation to address its expanding oversight duties, according to Chairman Mike Selig's congressional testimony, despite a substantial decline in the agency's workforce under President Donald Trump's administration. Approximately a quarter of the CFTC's staff has departed since 2025, due to Trump's demands for significant cuts to the federal workforce, as per agency records.
However, the CFTC is also being tasked with regulating the rapidly growing cryptocurrency and prediction markets. Selig stated that AI tools, such as Microsoft's Copilot, are being utilized to enhance surveillance and investigations, and that the agency is operating more efficiently and effectively despite staffing cuts. Chairman Glenn 'GT' Thompson expressed concerns about the agency's capacity to handle its growing responsibilities, particularly with regards to digital assets and prediction markets.
Selig assured the committee that he would request assistance if the need for additional qualified staff arises. The CFTC is currently pursuing a preliminary rule process to establish guidelines for US prediction markets and has initiated numerous investigations into potential insider trading and market manipulation. The agency's budget request for the upcoming year includes a request for only three additional enforcement staff, which has raised concerns about its ability to effectively regulate the growing markets. The Digital Asset Market Clarity Act, currently being worked on by the Senate, would grant the CFTC a central role in overseeing non-securities crypto trading, including transactions involving leading assets such as bitcoin and Ethereum.
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 required more personnel to effectively oversee crypto and prediction markets. The CFTC's current workload has been stretched thin, with the agency rejecting contracts and actively reviewing new markets that emerge daily.
The committee's top Democrat, Representative Angie Craig, argued that the agency's workforce is insufficient to handle its growing responsibilities and that it requires additional staff, funding, and statutory authority to effectively regulate the markets.