The US Commodity Futures Trading Commission is embracing artificial intelligence and automation to tackle its expanding oversight duties, according to Chairman Mike Selig's congressional testimony, despite a significant decline in the agency's workforce under the Trump administration. Approximately a quarter of the CFTC's staff has departed since 2025, due to Trump's demands for a reduced federal workforce, as per agency records. However, the CFTC is also tasked with regulating the rapidly growing cryptocurrency and prediction markets.
Selig stated that AI tools will be instrumental in surveillance and investigations, and the agency is integrating them into its workflows, citing the widespread use of Microsoft's Copilot AI tool as a productivity aid. When questioned about staff declines, Selig asserted that the agency is operating more efficiently and effectively. The House Agriculture Committee Chairman, Glenn 'GT' Thompson, noted that the CFTC is being given a lot to handle with digital assets and prediction markets, and sought assurance that Selig would request help if the need for additional staff arises. Selig confirmed that he would do so.
He emphasized that proper market enforcement is a top priority, although the CFTC's budget request for the next year only asks for three more enforcement staff, which would still be about 23% short of the 140 staff members the division had in 2025. The Digital Asset Market Clarity Act, currently being worked on by the Senate, would grant the CFTC a central role in overseeing non-securities crypto trading, including transactions in leading assets like bitcoin and Ethereum's ether.
The agency is also claiming jurisdiction over prediction markets, such as those operated by Polymarket and Kalshi, which have grown from millions to billions of dollars in just a year. Selig's predecessor, former Chairman Rostin Behnam, had argued that the agency needed more personnel to oversee crypto and lacked the resources to police the expanding 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 markets have drawn scrutiny over certain trades related to US military actions and government statements, suggesting potential insider trading by individuals with government insights. Selig acknowledged numerous ongoing investigations in prediction markets but did not provide further details. He stated that regulated platforms are the first line of defense against insider trading, fraud, and market manipulation, while the CFTC serves as a second line of defense.
The agency regularly rejects contracts and is actively reviewing the markets, with a zero-tolerance policy for illicit activities. Representative Angie Craig, the committee's top Democrat, argued that the agency's workforce is stretched too thin, particularly given its role as the primary regulator of two of the fastest-growing and most volatile markets.
Craig emphasized the need to provide the CFTC with sufficient staff, funding, and statutory authority to perform its duties. The personnel decline at the regulator includes the commission itself, which is supposed to have five members but has been left with only Selig. The chairman was questioned about proceeding with major rules as a one-person commission and stated that he would move forward with new regulations, as slowing down the rulemaking process would not be in the best interest of the American people. The CFTC is pursuing a preliminary rule process to establish guardrails for US prediction markets, and Selig has also pushed policy initiatives in crypto.
Thompson and Craig plan to send a letter to the White House to encourage the prompt filling of commissioner positions with CFTC nominees from both parties.