The US Commodity Futures Trading Commission is embracing artificial intelligence and automation to tackle its expanded oversight responsibilities, according to Chairman Mike Selig's congressional testimony, despite a significant decline in the agency's workforce under the Trump administration. With about a quarter of the CFTC's staff having left since 2025, the agency is facing new challenges in regulating the rapidly growing cryptocurrency and prediction markets. Selig emphasized the importance of AI in enhancing surveillance and investigations, highlighting the use of Microsoft's Copilot AI tool as a productivity aid.
When questioned about staff declines, Selig assured lawmakers that the agency is operating more efficiently and effectively. The CFTC is currently being called upon to regulate digital assets and prediction markets, with Chairman Glenn 'GT' Thompson seeking assurances that Selig will request additional staff if needed. Selig confirmed that proper enforcement of the markets is a top priority, although the agency's budget request for next year only includes three additional enforcement staff. The Digital Asset Market Clarity Act, currently being worked on by the Senate, would elevate the CFTC's role in overseeing non-securities crypto trading, including transactions in leading assets such as bitcoin and Ethereum.
The agency is also claiming jurisdiction over prediction markets, which have been embroiled in accusations of insider trading. Selig acknowledged numerous ongoing investigations in prediction markets but declined to provide further details. He emphasized the importance of regulated platforms as the first line of defense against insider trading, fraud, and market manipulation, with the CFTC serving as a second line of defense. Representative Angie Craig argued that the agency's workforce is stretched too thin, particularly given its role as the primary regulator of two of the fastest-growing and most volatile markets.
The committee's top Democrat called for the CFTC to be given the necessary staff, funding, and statutory authority to perform its duties effectively. The White House has been criticized for leaving the commission with only one member, Chairman Selig, who was questioned about proceeding with major rules as a one-person commission. Selig indicated that he would move forward with new regulations, including a preliminary rule process to establish guardrails for US prediction markets.
Committee Chairman Thompson announced plans to send a letter to the White House, encouraging the prompt filling of commissioner positions with CFTC nominees from both parties.