The US Commodity Futures Trading Commission is leveraging artificial intelligence and automation to tackle its expanding oversight responsibilities, according to testimony from Chairman Mike Selig, 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 demands for federal workforce reductions. However, the agency is also being tasked with regulating the rapidly growing cryptocurrency and prediction markets. Selig noted that AI tools, such as Microsoft's Copilot, are being utilized to enhance surveillance and investigations, and that the agency is operating more efficiently despite staff reductions.
The CFTC is prioritizing enforcement, with a focus on digital assets and prediction markets, including transactions involving bitcoin and ether. The agency is also asserting its jurisdiction over prediction markets, which have faced accusations of insider trading.
Selig acknowledged numerous ongoing investigations but did not provide details. The CFTC is working to establish guardrails for US prediction markets and is pursuing policy initiatives in crypto, with Selig emphasizing the need for proper enforcement and oversight. Lawmakers have expressed concerns about the agency's staffing levels, with some arguing that the CFTC requires additional resources to effectively regulate the growing markets.