The US Commodity Futures Trading Commission is leveraging artificial intelligence and automation to tackle its growing responsibilities, including the oversight of 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 staff leaving since 2025, the CFTC is pushing forward with its regulatory duties. Selig emphasized the importance of AI in enhancing the agency's surveillance and investigative capabilities, pointing to the use of Microsoft's Copilot AI tool as a key productivity aid. When questioned about the staff reductions, Selig asserted that the agency is operating more efficiently and effectively.
The CFTC is facing increased demands to regulate digital assets and prediction markets, with the Digital Asset Market Clarity Act potentially elevating the agency's role in overseeing non-securities crypto trading. Selig acknowledged the challenges in enforcing market regulations, particularly in the context of insider trading allegations in prediction markets. The agency is pursuing a preliminary rule process to establish guidelines for US prediction markets and is also exploring policy initiatives in crypto. Lawmakers expressed concerns about the agency's resources, with Representative Angie Craig arguing that the CFTC's workforce is stretched too thin.
Chairman Glenn 'GT' Thompson and Craig plan to send a letter to the White House urging the prompt filling of commissioner positions to support the agency's regulatory efforts.