The US Commodity Futures Trading Commission is increasingly relying on artificial intelligence and automation to manage its expanding responsibilities in overseeing cryptocurrency and prediction markets, according to Chairman Mike Selig's testimony before Congress. Despite a significant decline in the agency's workforce under the Trump administration, with about a quarter of the staff leaving since 2025, Selig emphasized that AI tools are being leveraged to enhance surveillance and investigative capabilities.
The CFTC is exploring the use of AI, including Microsoft's Copilot, to streamline workflows and improve efficiency. Selig assured lawmakers that the agency is operating more efficiently and effectively, even with reduced staffing. However, committee members expressed concerns about the agency's ability to regulate the rapidly growing crypto and prediction markets with its current resources.
The CFTC is pursuing rulemaking to establish guidelines for US prediction markets and is also focused on regulating non-securities crypto trading. Chairman Selig acknowledged the need for additional qualified staff and committed to requesting assistance from the committee if necessary.
The agency's budget request for the upcoming year includes a modest increase in enforcement staff, but some lawmakers argue that more significant investments are needed to ensure effective oversight of these emerging markets.