The US Commodity Futures Trading Commission is leveraging artificial intelligence and automation to address its expanded responsibilities, according to Chairman Mike Selig's congressional testimony, despite a substantial decline in the agency's workforce under the Trump administration. Since 2025, approximately a quarter of the CFTC's staff has departed, due to President Trump's demands for significant federal workforce reductions. However, the CFTC is also tasked with regulating the rapidly growing cryptocurrency and prediction markets.
Selig stated 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 staff declines, Selig asserted that the agency is operating more efficiently.
Committee Chairman Glenn 'GT' Thompson expressed concerns about the agency's capacity to handle its expanded role, particularly in 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 next year includes only three additional enforcement staff. The Digital Asset Market Clarity Act, currently being worked on by the Senate, would elevate the CFTC's role in non-securities crypto trading, including transactions in leading assets like bitcoin and Ethereum.
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 required more personnel to oversee crypto and prediction markets. During Selig's tenure, the prediction markets have faced accusations of insider trading, with some cases being addressed by the firms themselves. The chairman acknowledged numerous ongoing investigations in prediction markets but did not provide further details.
He emphasized that regulated platforms are the primary line of defense against insider trading, fraud, and market manipulation, while the CFTC serves as a secondary line of defense. Selig noted that the agency regularly rejects contracts and is actively reviewing the markets, with a zero-tolerance policy for illicit activity.
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. 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 stated 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, encouraging them to fill the vacant commissioner positions with nominees from both parties.