The US Commodity Futures Trading Commission is embracing artificial intelligence and automation to tackle its growing oversight duties, according to Chairman Mike Selig's congressional testimony, despite a significant decline in the agency's workforce under President Donald Trump's administration. With about a quarter of the CFTC's staff departing since 2025, the agency is leveraging AI tools, such as Microsoft's Copilot, to enhance surveillance and investigation capabilities. Selig assured lawmakers that the CFTC is operating more efficiently and effectively, with AI playing a crucial role in monitoring and regulating the rapidly expanding cryptocurrency and prediction markets.
The agency is currently conducting numerous investigations into these markets, with a focus on preventing insider trading, fraud, and market manipulation. However, concerns have been raised about the CFTC's capacity to handle its increased responsibilities, with some lawmakers arguing that the agency requires additional staff and funding to effectively regulate these volatile markets.