The US Commodity Futures Trading Commission is leveraging artificial intelligence and automation to cope with significant new regulatory responsibilities, as outlined by Chairman Mike Selig in congressional testimony. Despite a substantial decline in the agency's workforce under the Trump administration, with approximately a quarter of staff departing since 2025, the CFTC is tasked with overseeing rapidly expanding cryptocurrency and prediction markets. Selig emphasized the utility of AI in enhancing surveillance and investigative capabilities, pointing to the extensive use of Microsoft's Copilot AI tool as a key productivity aid. When questioned about staffing reductions, Selig asserted that the agency is operating more efficiently and effectively.
The House Agriculture Committee expressed concerns about the CFTC's ability to manage its expanded role, particularly in light of the Digital Asset Market Clarity Act, which would grant the agency central authority over non-securities crypto trading. Selig confirmed that proper market enforcement is a top priority, although the CFTC's budget request for the upcoming year includes only a modest increase in enforcement staff.
The agency is also claiming jurisdiction over prediction markets, which have grown exponentially in recent years. Selig acknowledged numerous ongoing investigations into these markets, emphasizing the importance of regulated platforms as a first line of defense against insider trading and market manipulation.
While the chairman expressed a zero-tolerance policy for illicit activity, committee members argued that the agency's workforce is overstretched and requires additional support to effectively regulate the rapidly evolving crypto and prediction markets.