The US Commodity Futures Trading Commission is embracing artificial intelligence and automation to tackle its expanding oversight duties, according to Chairman Mike Selig's testimony before Congress. This development comes as the agency faces a substantial decline in its workforce under the Trump administration, with about a quarter of its staff leaving since 2025. However, the CFTC is also being tasked with regulating the rapidly growing cryptocurrency and prediction markets.
Selig noted that AI tools, such as Microsoft's Copilot, are being utilized to enhance productivity and facilitate investigations. When questioned about the staff decline, Selig stated that the agency is operating more efficiently and effectively.
Committee Chairman Glenn 'GT' Thompson expressed concerns about the agency's capacity to handle its increasing responsibilities, particularly in the areas of digital assets and prediction markets. Selig assured him that if the need for additional qualified staff arises, he will seek assistance from the panel.
The chairman emphasized that proper market enforcement is a top priority, despite the agency's budget request for the upcoming year only seeking three additional enforcement staff. The proposed Digital Asset Market Clarity Act would place the CFTC at the forefront of 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 significant growth and drawn scrutiny over potential insider trading. Selig acknowledged numerous ongoing investigations in the prediction markets but declined to provide specifics.
He emphasized the importance of regulated platforms in preventing insider trading, fraud, and market manipulation, while the CFTC serves as a secondary line of defense. The agency has a zero-tolerance policy for illicit market activity, with Selig warning that those engaging in such behavior will face the full force of the law.
Nevertheless, Representative Angie Craig argued that the agency's workforce is overstretched, particularly given its role as the primary regulator of two rapidly expanding and volatile markets. She stressed the need for the CFTC to receive adequate staffing, funding, and statutory authority to perform its duties effectively. The White House has been criticized for leaving the commission with only one member, Selig, despite the law requiring five members, including two from the minority party.
Selig was questioned about proceeding with major rules as a one-person commission and stated that he cannot slow down the rulemaking process for the sake of the American people. The CFTC is currently pursuing a preliminary rule process to establish guidelines for US prediction markets, and Selig has also promoted policy initiatives in the crypto space.
Committee Chairman Thompson announced plans to send a letter to the White House, urging them to fill the vacant commissioner positions with nominees from both parties.