The US Commodity Futures Trading Commission is leveraging artificial intelligence and automation to tackle its expanding 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 increasingly relying on technology to support its oversight of the cryptocurrency and prediction markets. Selig noted that AI tools, such as Microsoft's Copilot, are being integrated into various workflows to enhance surveillance and investigations.
When questioned about the staff reductions, Selig emphasized that the agency is operating more efficiently and effectively. The CFTC is being tasked with regulating the rapidly growing crypto and prediction markets, with Chairman Glenn 'GT' Thompson seeking assurance that Selig will request additional support if needed. Selig confirmed that proper enforcement of the markets is a top priority, although the agency's budget request for the next year only includes three additional enforcement staff.
The Digital Asset Market Clarity Act, currently being worked on by the Senate, would grant the CFTC a central role in overseeing non-securities crypto trading, including transactions in leading assets such as bitcoin and Ethereum. The agency is also asserting its jurisdiction over prediction markets, which have been marred by accusations of insider trading. Selig acknowledged numerous ongoing investigations in the prediction markets but declined to provide further details. He emphasized that regulated platforms are the first line of defense against illicit activities, while the CFTC serves as a second line of defense.
The agency has a zero-tolerance policy for market manipulation and insider trading, with Selig warning that those engaging in such behavior will face the full force of the law. However, Representative Angie Craig argued that the agency's workforce is overstretched, particularly given its role as the primary regulator of two of the fastest-growing and most volatile markets. Craig emphasized the need for the CFTC to receive adequate staffing, funding, and statutory authority to effectively perform its duties. The personnel declines at the regulator include the commission itself, which is currently operating with only one member, Chairman Selig.
The committee plans to send a letter to the White House, urging them to fill the vacant commissioner positions with nominees from both parties.