The US Commodity Futures Trading Commission is leveraging artificial intelligence and automation to address significant new oversight responsibilities, according to Chairman Mike Selig's congressional testimony, despite a substantial decline in the agency's workforce under the Trump administration. Approximately a quarter of the CFTC's staff has departed since 2025, due to President Trump's demands for federal workforce reductions.
However, the CFTC is also tasked with regulating rapidly growing 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 staff reductions, Selig asserted that the agency is operating more efficiently and effectively.
Committee Chairman Glenn 'GT' Thompson expressed concern about the agency's capacity to handle its expanded responsibilities, particularly with regards to digital assets and prediction markets. Selig assured the committee that he would request assistance if needed.
The CFTC is currently pursuing a preliminary rule process to establish guidelines for US prediction markets, and Selig has also initiated policy initiatives in the crypto space. The agency's budget request for the upcoming year includes a modest increase in enforcement staff, but this still falls short of pre-2025 levels. The Digital Asset Market Clarity Act, currently under consideration in the Senate, 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 significant growth and drawn scrutiny over potential insider trading.
Selig acknowledged 'numerous ongoing investigations' in prediction markets but declined to provide further details. He emphasized the importance of regulated platforms as the first line of defense against illicit activities and the CFTC's role as a second line of defense. Representative Angie Craig, the committee's top Democrat, argued that the agency's workforce is overstretched, particularly given its role as primary regulator of two rapidly growing and volatile markets. Craig advocated for providing the CFTC with necessary staff, funding, and statutory authority to effectively perform its duties.
The regulator's personnel declines include the commission itself, which is supposed to have five members but currently consists of only Chairman Selig. The committee expressed concern about the impact of this on the agency's ability to function effectively and requested that the White House fill the vacant commissioner positions promptly.