The US Commodity Futures Trading Commission is leveraging artificial intelligence and automation to navigate significant new regulatory responsibilities, as stated by Chairman Mike Selig in his congressional testimony. Despite a substantial decline in the agency's workforce under the Trump administration, with approximately a quarter of the staff leaving since 2025, the CFTC is tasked with overseeing the rapidly expanding crypto and prediction markets. Selig emphasized that AI tools will be instrumental in surveillance and investigations, citing the widespread use of Microsoft's Copilot AI tool as a key productivity aid. When questioned about staff reductions, Selig asserted that the agency is operating more efficiently and effectively.
The committee chairman, Glenn 'GT' Thompson, expressed concerns about the CFTC's ability to handle its new duties and requested assurance that Selig would seek help if needed. Selig confirmed that proper market enforcement is a top priority and acknowledged the need for additional qualified staff. The CFTC is currently pursuing a preliminary rule process for US prediction markets and has initiated numerous investigations, although Selig declined to provide specifics.
The agency's budget request for the upcoming year includes a modest increase in enforcement staff, but critics argue that more resources are necessary to effectively regulate the crypto and prediction markets.