The US Commodity Futures Trading Commission (CFTC) is embracing artificial intelligence (AI) and automation to cope with significant new responsibilities, including the regulation of cryptocurrency and prediction markets, according to Chairman Mike Selig's congressional testimony. Despite a substantial decline in the agency's workforce under the Trump administration, with about a quarter of staff leaving since 2025, the CFTC is leveraging AI to enhance its surveillance and investigative capabilities. Selig emphasized that 'tools like AI will be very helpful in surveilling and bringing investigations,' and noted the agency's use of Microsoft's Copilot AI tool to boost productivity.
The CFTC is currently overseeing the rapidly expanding arenas of cryptocurrency and prediction markets, with Chairman Selig acknowledging 'numerous investigations ongoing' in the latter. While the agency faces challenges in regulating these markets with reduced staff, Selig remains committed to effective enforcement, stating that 'proper enforcement of the markets is a top priority.' The CFTC's budget request for the upcoming year includes a modest increase in enforcement staff, but lawmakers have expressed concerns that the agency may be under-resourced to effectively regulate these complex and volatile markets.