The US Commodity Futures Trading Commission is leveraging artificial intelligence and automation to tackle its growing oversight duties, according to Chairman Mike Selig's congressional testimony, despite a substantial decline in the agency's workforce under President Donald Trump's administration. Approximately a quarter of the CFTC's staff has departed since 2025, due to Trump's demands for significant federal workforce reductions. However, the CFTC is also being tasked with regulating the rapidly expanding cryptocurrency and prediction markets.
Selig emphasized that AI tools, such as Microsoft's Copilot, will be instrumental in surveillance and investigations, and are being integrated into various workflows. 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 with regard to digital assets and prediction markets. Selig assured him that if additional qualified staff are needed, he will request assistance from the panel. The CFTC is prioritizing enforcement, with a 'top priority' on proper market regulation, although its budget request for the upcoming year only includes three additional enforcement staff.
The Digital Asset Market Clarity Act, currently being worked on by the Senate, would grant the CFTC a central role in overseeing non-securities crypto trading, including transactions involving prominent assets like bitcoin and Ethereum. The agency is also asserting its jurisdiction over prediction markets, which have experienced significant growth and have been plagued by accusations of insider trading. Selig acknowledged 'numerous investigations ongoing' in prediction markets but declined to provide specifics. He emphasized that regulated platforms are the primary line of defense against illicit activities, while the CFTC serves as a secondary line of defense.
The agency has a 'zero tolerance' policy for market manipulation and insider trading, with Selig warning that those engaging in such behavior will face the full force of the law. However, 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.
She emphasized the need for the CFTC to receive adequate staffing, funding, and statutory authority to effectively perform its duties. The regulator's personnel declines include the commission itself, which is supposed to have five members but has been left with only Selig.
The chairman was questioned about proceeding with major rules as a one-person commission and indicated that he will move forward with new regulations, including a preliminary rule process for US prediction markets and policy initiatives in crypto. Committee Chairman Thompson announced plans to send a letter to the White House, urging them to promptly fill the vacant commissioner positions with nominees from both parties.