The US Commodity Futures Trading Commission is leveraging artificial intelligence and automation to address significant new oversight duties, according to testimony from Chairman Mike Selig, despite a substantial decline in the agency's workforce under the Trump administration. Approximately a quarter of the CFTC's staff has departed since 2025, due to President Trump's demands for federal workforce reductions. However, the CFTC is also being tasked with regulating emerging and rapidly expanding areas, including cryptocurrency and prediction markets.
Selig noted that AI tools will be instrumental in surveillance and investigations, citing the widespread use of Microsoft's Copilot AI as a key productivity aid. When questioned about staffing declines, Selig asserted that the agency is operating more efficiently and effectively. Committee Chairman Glenn 'GT' Thompson expressed concern about the agency's capacity to handle its expanded responsibilities, particularly in 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 prioritizing enforcement, although its budget request for the upcoming year includes only a modest increase in enforcement staff. The Digital Asset Market Clarity Act, currently under consideration in the Senate, would elevate the CFTC's role in overseeing non-securities crypto trading, including transactions involving leading assets like bitcoin and Ethereum.
The agency is also asserting its jurisdiction over prediction markets, which have grown significantly in recent years. Selig acknowledged numerous ongoing investigations in prediction markets but declined to provide further details. He emphasized the importance of regulated platforms as a first line of defense against insider trading, fraud, and market manipulation, with the CFTC serving as a secondary line of defense.
The agency has a zero-tolerance policy for illicit market activity, and Selig warned that those engaging in such behavior will face the full force of the law. Representative Angie Craig, the committee's top Democrat, argued that the agency's workforce is overstretched, particularly given its role as primary regulator of two rapidly growing and volatile markets.
She emphasized the need for the CFTC to receive adequate staff, funding, and statutory authority to effectively perform its duties. The regulator's personnel declines include the commission itself, which is currently operating with a single member, Chairman Selig. The White House has been urged to promptly fill the vacant commissioner positions with nominees from both parties.