The US Commodity Futures Trading Commission is embracing artificial intelligence and automation to tackle its expanding oversight responsibilities, particularly in the realms of cryptocurrency and prediction markets, according to Chairman Mike Selig's testimony to Congress. Despite a significant decline in the agency's workforce under the Trump administration, with approximately a quarter of staff leaving since 2025, the CFTC is leveraging AI tools like Microsoft's Copilot to enhance efficiency and effectiveness.
Selig emphasized that 'tools such as AI are going to be very helpful in surveilling and bringing investigations,' and acknowledged the agency's 'top priority' of enforcing proper market regulations. The CFTC is currently navigating its role in regulating digital assets and prediction markets, with the Senate's Digital Asset Market Clarity Act potentially elevating the agency's central role in non-securities crypto trading. The prediction markets have drawn scrutiny over accusations of insider trading, with Selig confirming 'numerous investigations ongoing' but declining to provide further details. The agency's workforce reductions have raised concerns among lawmakers, with Representative Angie Craig arguing that the CFTC's staff is 'stretched too thin' and requiring additional resources to effectively regulate the rapidly growing and volatile markets.