The US Commodity Futures Trading Commission is leveraging artificial intelligence and automation to tackle its growing responsibilities, according to Chairman Mike Selig's congressional testimony. 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 surveillance and investigations. Selig emphasized that the agency is operating more efficiently and effectively, with a top priority on enforcing market regulations. The CFTC is poised to play a central role in overseeing non-securities crypto trading and prediction markets, with the Digital Asset Market Clarity Act potentially elevating its authority.
The agency is also addressing concerns over insider trading and market manipulation in these emerging markets, with numerous investigations ongoing. However, lawmakers have expressed concerns that the CFTC's stretched workforce may hinder its ability to effectively regulate these volatile markets, calling for increased funding and staffing to support the agency's expanded role.