The US Commodity Futures Trading Commission is leveraging artificial intelligence and automation to tackle its expanding regulatory duties, according to testimony from Chairman Mike Selig, despite a substantial decline in the agency's workforce under the Trump administration. Approximately a quarter of the CFTC's staff has departed since 2025, amid demands for federal workforce reductions. However, the agency is also being tasked with regulating the rapidly growing cryptocurrency and prediction markets. Selig emphasized the importance of AI in supporting the agency's surveillance and investigative efforts, citing the use of Microsoft's Copilot AI tool as a key productivity aid.
When questioned about staffing reductions, Selig asserted that the agency is operating more efficiently and effectively. Committee Chairman Glenn 'GT' Thompson expressed concern about the agency's capacity to handle its increased workload, particularly with regards to digital assets and prediction markets, and sought assurance that Selig would request assistance if needed. Selig confirmed that he would do so.
The CFTC is prioritizing enforcement, although its budget request for the upcoming year includes only a modest increase in enforcement staff. The Digital Asset Market Clarity Act, currently under consideration in the Senate, would grant the CFTC a central role in overseeing non-securities crypto trading, including transactions involving leading assets like bitcoin and Ethereum. The agency is also asserting its jurisdiction over prediction markets, which have experienced significant growth and drawn scrutiny over potential insider trading. Selig acknowledged numerous ongoing investigations in this area but declined to provide further details.
He emphasized the importance of regulated platforms in preventing illicit activity and stated that the CFTC has a 'zero tolerance' policy for such behavior. However, Representative Angie Craig argued that the agency's workforce is overstretched, particularly given its role as primary regulator of two rapidly expanding and volatile markets.
Craig called for increased staffing, funding, and statutory authority to support the CFTC's efforts. The agency's personnel declines include the commission itself, which is currently operating with a single member, Chairman Selig. He was questioned about the impact of this on the agency's rulemaking process and indicated that he would proceed with major rules despite the commission's reduced membership.