The U.S. Commodity Futures Trading Commission is leveraging artificial intelligence and automation to address its expanding oversight duties, according to testimony by 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 President Trump's demands for a reduced federal workforce. However, the CFTC is being tasked with regulating the rapidly growing cryptocurrency and prediction markets.
Selig noted that AI tools, such as Microsoft's Copilot, will be instrumental in monitoring and investigating these markets, allowing the agency to operate more efficiently. When questioned about staffing declines, Selig assured lawmakers that the CFTC is 'running more efficiently and effectively.' Committee Chairman Glenn 'GT' Thompson expressed concern about the agency's capacity to handle its new responsibilities, particularly with regard to digital assets and prediction markets. Selig confirmed that the CFTC is prioritizing enforcement and will request additional support if needed.
The agency's budget request for the upcoming year includes a modest increase in enforcement staff, but this still falls short of pre-2025 levels. The proposed Digital Asset Market Clarity Act would grant the CFTC a central role in regulating non-securities crypto trading, including transactions involving bitcoin and Ethereum. The agency is also asserting its jurisdiction over prediction markets, which have grown significantly in recent years.
Selig acknowledged 'numerous investigations' into these markets, emphasizing the importance of regulated platforms in preventing insider trading and market manipulation. While the CFTC has a 'zero tolerance' policy for illicit activity, Representative Angie Craig argued that the agency's workforce is overstretched and requires additional funding and statutory authority to effectively regulate these markets. The committee's top Democrat emphasized the need for the CFTC to receive adequate support to fulfill its role as primary regulator of the rapidly growing crypto and prediction markets.