The US Commodity Futures Trading Commission is leveraging artificial intelligence and automation to tackle its growing oversight responsibilities, according to Chairman Mike Selig's congressional testimony, despite a significant decline in the agency's workforce under President Donald Trump's administration. Since 2025, about a quarter of the CFTC's staff has departed, due to Trump's demands for a reduced federal workforce, as per agency records.
However, the CFTC is now tasked with regulating the rapidly expanding cryptocurrency and prediction markets. Selig noted that AI tools, such as Microsoft's Copilot, are being utilized to enhance surveillance and investigations, and are being integrated into various workflows.
When questioned about the staff reductions, Selig stated that the agency is operating more efficiently and effectively. Committee Chairman Glenn 'GT' Thompson expressed concern about the agency's ability to handle its growing responsibilities, particularly with regards to digital assets and prediction markets, and sought assurance that Selig would request additional support if needed. 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 upcoming year only includes three additional enforcement staff, leaving the division about 23% short of its 2025 staffing level.
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 involving prominent assets like bitcoin and Ethereum. The agency is also asserting its jurisdiction over prediction markets, such as those operated by Polymarket and Kalshi, which have experienced significant growth. Selig's predecessor, former Chairman Rostin Behnam, had argued that the agency required more resources to effectively 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 the 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 activities.
Representative Angie Craig, the committee's top Democrat, 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 staffing, funding, and statutory authority to fulfill its responsibilities. The regulator's personnel declines include 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, citing the need to protect the American people.
The CFTC is currently pursuing a preliminary rule process to establish guardrails for US prediction markets, and Selig has also pushed policy initiatives in crypto. Committee Chairman Thompson announced plans to send a letter to the White House, along with Craig, to encourage the prompt filling of commissioner positions with CFTC nominees from both parties.