The US Commodity Futures Trading Commission is leveraging artificial intelligence and automation to tackle its expanding oversight responsibilities, according to Chairman Mike Selig's congressional testimony, despite a significant decline in the agency's workforce under the Trump administration. Since 2025, about a quarter of the CFTC's staff has departed, due to President Trump's demands for substantial cuts to the federal workforce, as per agency records. 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, are being utilized to enhance productivity and facilitate investigations. When questioned about the staff reductions, Selig asserted that the agency is operating more efficiently. The House Agriculture Committee Chairman, Glenn 'GT' Thompson, expressed concern 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 needed.

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 sector. The agency's budget request for the upcoming year includes a request for only three additional enforcement staff, which would still leave the division short of its 2025 staffing levels.

The Digital Asset Market Clarity Act, currently being worked on by the Senate, would grant the CFTC a central role in regulating non-securities crypto trading, including transactions involving leading assets like bitcoin and Ethereum. Selig acknowledged 'numerous ongoing investigations' in the prediction markets but did not provide further details. He emphasized the importance of regulated platforms in preventing insider trading, fraud, and market manipulation, while the CFTC serves 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.