The US Commodity Futures Trading Commission is increasingly relying on artificial intelligence and automation to address its substantial new regulatory responsibilities, according to congressional 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, in line with President Trump's demands for a reduced federal workforce, as per agency records. However, the CFTC is also tasked with regulating the rapidly expanding cryptocurrency and prediction markets.
Selig stated 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 staff reductions, Selig asserted that the agency is operating more efficiently and effectively. The House Agriculture Committee Chairman, Glenn 'GT' Thompson, noted that the CFTC is being assigned a substantial workload with digital assets and prediction markets, and sought assurance from Selig that he would request assistance if the need for additional qualified staff arose. Selig confirmed this, emphasizing that proper market enforcement is a top priority.
The CFTC's budget request for the upcoming year includes a request for only three additional enforcement staff, which would still leave the division approximately 23% short of its 2025 staffing level. The proposed Digital Asset Market Clarity Act would elevate the CFTC's role in non-securities crypto trading, encompassing transactions in prominent assets like bitcoin and Ethereum.
The agency is also claiming jurisdiction over prediction markets, such as those operated by Polymarket and Kalshi, which have experienced significant growth. Selig's predecessor, Rostin Behnam, had argued that the agency required more personnel to oversee crypto and lacked the resources to regulate the expanding prediction markets. During Selig's tenure, the prediction markets have faced accusations of insider trading, with some instances being addressed by the firms themselves. The chairman acknowledged numerous ongoing investigations in prediction markets but declined to provide specifics.
He emphasized that regulated platforms are the primary line of defense against illicit activities, while the CFTC serves as a secondary line of defense. Selig noted that his agency regularly rejects contracts and is actively reviewing market activity, with a zero-tolerance policy for illicit behavior. However, Representative Angie Craig argued that the agency's workforce is overstretched, particularly given its role as the primary regulator of two rapidly growing and volatile markets. Craig stressed the need for the CFTC to receive adequate staffing, funding, and statutory authority to perform its duties effectively.