The US Commodity Futures Trading Commission is leveraging artificial intelligence to compensate for significant staffing reductions, according to Chairman Mike Selig's testimony before Congress. Despite a decline of approximately 25% in the agency's workforce since 2025, the CFTC is tasked with overseeing the rapidly expanding domains of cryptocurrency and prediction markets.
Selig emphasized the utility of AI tools, such as Microsoft's Copilot, in enhancing surveillance and facilitating investigations. When questioned about the agency's reduced staffing, Selig asserted that the CFTC is operating more efficiently. Committee Chairman Glenn 'GT' Thompson expressed concerns about the agency's capacity to manage its growing responsibilities, particularly in the areas of digital assets and prediction markets, and sought assurance that Selig would request assistance if needed.
Selig confirmed that the proper enforcement of these markets remains a top priority, although the agency's budget request for the upcoming year includes only a modest increase in enforcement staff. The proposed Digital Asset Market Clarity Act would grant the CFTC a central role in regulating 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 rapid growth and drawn scrutiny due to allegations of insider trading.
Selig acknowledged the existence of numerous ongoing investigations in these markets but declined to provide further details. He emphasized the importance of regulated platforms in preventing illicit activities and stated that the CFTC has a zero-tolerance policy towards market manipulation. Representative Angie Craig argued that the agency's reduced workforce hinders its ability to effectively regulate the volatile markets, emphasizing the need for increased staffing, funding, and statutory authority. The committee expressed concerns about the commission's current composition, with Selig being the sole member, and plans to send a letter to the White House urging the prompt appointment of additional commissioners.