The US Commodity Futures Trading Commission is leveraging artificial intelligence and automation to cope with significant staffing reductions, according to Chairman Mike Selig's congressional testimony, as the agency faces growing responsibilities in overseeing cryptocurrency and prediction markets. Since 2025, the CFTC has lost about a quarter of its staff due to President Donald Trump's demands for a smaller federal workforce. However, the agency is being tasked with regulating rapidly expanding areas such as cryptocurrency and prediction markets.
Selig emphasized the importance of AI tools in surveillance and investigations, citing the use of Microsoft's Copilot AI as a key productivity aid. When questioned about the staff decline, Selig asserted that the agency is operating more efficiently and effectively.
The House Agriculture Committee Chairman, Glenn 'GT' Thompson, expressed concern about the agency's ability to handle its growing workload and requested that Selig seek additional support if needed. Selig confirmed that he would do so. The CFTC's enforcement of the markets remains a top priority, despite the agency's budget request for only three more enforcement staff. The Digital Asset Market Clarity Act, currently being worked on by the Senate, would grant the CFTC a central role in regulating non-securities crypto trading.
The agency is also claiming jurisdiction over prediction markets, which have grown significantly in the past year. Selig's predecessor, Rostin Behnam, had argued that the agency needed more resources to oversee crypto and prediction markets. Selig acknowledged 'numerous investigations ongoing' in prediction markets but did not provide further details. He emphasized the importance of regulated platforms in preventing insider trading, fraud, and market manipulation.
The CFTC has a 'zero tolerance' policy for illicit market activity, and Selig warned that those engaging in such behavior would 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 in regulating two of the fastest-growing and most volatile markets. Craig emphasized the need for the CFTC to receive adequate staff, funding, and statutory authority to perform its duties.
The regulator's personnel declines include the commission itself, which is supposed to have five members but currently has only Selig. The chairman was questioned about proceeding with major rules as a one-person commission and indicated that he would move forward with new regulations. The CFTC is pursuing a preliminary rule process for US prediction markets, and Selig has also initiated policy initiatives in crypto. Thompson and Craig plan to send a letter to the White House, urging them to fill the vacant commissioner positions with nominees from both parties.