The U.S. Commodity Futures Trading Commission is leveraging artificial intelligence and automation to tackle its expanding oversight duties, particularly in the realms of cryptocurrency and prediction markets, according to testimony from Chairman Mike Selig.
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 adapting to its new responsibilities. Selig emphasized that AI tools, such as Microsoft's Copilot, are being integrated into various workflows to enhance surveillance and investigations. When questioned about staffing reductions, Selig assured lawmakers that the agency is operating more efficiently and effectively. The CFTC is currently handling numerous investigations into prediction markets, where insider trading accusations have surfaced.
Selig confirmed that the agency has a zero-tolerance policy for illicit activities and is working closely with regulated platforms to prevent market manipulation. However, concerns have been raised about the agency's capacity to handle its expanded role, with Representative Angie Craig arguing that the CFTC's workforce is overstretched. The committee's top Democrat stressed the need for additional staff, funding, and clear statutory authority to support the agency's mission.
The CFTC is pushing forward with regulatory initiatives, including a preliminary rule process for U.S. prediction markets, and Selig has indicated his intention to proceed with major rules despite the commission's current solitary composition.