The US Commodity Futures Trading Commission is embracing artificial intelligence and automation to tackle its expanding responsibilities, including the oversight of cryptocurrency and prediction markets, according to testimony from Chairman Mike Selig. Despite a significant decline in the agency's workforce under the Trump administration, with about a quarter of staff leaving since 2025, Selig emphasized that AI tools are being utilized to enhance surveillance and investigations. The CFTC is facing new challenges in regulating digital assets and prediction markets, with Chairman Selig acknowledging 'numerous investigations ongoing' in the latter.
The agency is incorporating AI into its workflows, including the use of Microsoft's Copilot AI tool, to improve efficiency. However, concerns have been raised about the agency's reduced staffing, with some arguing that it is stretched too thin to effectively regulate these rapidly growing markets. Selig has assured lawmakers that the agency is committed to proper enforcement and will request additional support if needed.
The CFTC is pursuing rulemaking to establish guardrails for US prediction markets and has initiated policy initiatives in crypto, with Chairman Selig emphasizing that the agency will not slow down its rulemaking processes despite being currently understaffed.