The US Commodity Futures Trading Commission is increasingly relying on artificial intelligence and automation to manage its expanding oversight duties, according to Chairman Mike Selig's testimony before Congress. 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 tasked with regulating the rapidly growing cryptocurrency and prediction markets. Selig emphasized that AI tools, such as Microsoft's Copilot, are being utilized to enhance surveillance and investigative capabilities. When questioned about staffing reductions, Selig asserted that the agency is operating more efficiently and effectively.
The House Agriculture Committee Chairman, Glenn 'GT' Thompson, expressed concern about the agency's capacity to handle its growing responsibilities and requested assurance that Selig would seek additional support if needed. Selig confirmed that he would do so, emphasizing that proper market enforcement is a top priority.
The CFTC's budget request for the upcoming year includes a modest increase in enforcement staff, from 105 to 108 people, still short of the 140 personnel in 2025. The Digital Asset Market Clarity Act, currently under consideration in the Senate, would grant the CFTC a central role in overseeing non-securities crypto trading, including transactions involving major assets like bitcoin and Ethereum.
The agency is also asserting its jurisdiction over prediction markets, such as those operated by Polymarket and Kalshi, which have experienced rapid growth. Selig's predecessor, Rostin Behnam, had previously 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 investigations ongoing' in prediction markets but declined to 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 regularly rejects contracts and is actively reviewing the hundreds of new markets that emerge daily. The committee's top Democrat, Representative Angie Craig, expressed concern that the agency's workforce is overstretched, particularly given its role as the primary regulator of two rapidly growing and volatile markets.
Craig argued that the CFTC requires additional staff, funding, and statutory authority to effectively perform its duties. The White House has been criticized for leaving the commission with a solitary member, Selig, despite the law requiring a five-member commission with two minority party representatives.
Selig was questioned about his plans to proceed with major rulemaking as a one-person commission, to which he replied that he cannot slow down the rulemaking process for the sake of the American people. The CFTC is currently pursuing a preliminary rule process to establish guardrails for US prediction markets, and Selig has also initiated policy initiatives in the crypto space. Committee Chairman Thompson announced plans to send a letter to the White House, along with Craig, to encourage the prompt filling of commissioner positions with nominees from both parties.