The US Commodity Futures Trading Commission is leveraging artificial intelligence and automation to cope with substantial new regulatory duties, according to Chairman Mike Selig's congressional testimony. Despite a notable decline in the agency's workforce under President Donald Trump's administration, the CFTC is tasked with overseeing burgeoning cryptocurrency and prediction markets. Selig noted that AI tools, such as Microsoft's Copilot, have been instrumental in enhancing the agency's surveillance and investigative capabilities.
When questioned about staffing reductions, Selig asserted that the agency is operating more efficiently. Committee Chairman Glenn 'GT' Thompson expressed concerns about the CFTC's ability to handle its expanded responsibilities, prompting Selig to assure him that he would request additional support if needed. The CFTC is currently navigating a central role in regulating non-securities crypto trading and claiming jurisdiction over prediction markets.
Selig acknowledged 'numerous ongoing investigations' in prediction markets, emphasizing the agency's zero-tolerance policy for illicit activities. However, Representative Angie Craig argued that the agency's workforce is overstretched, particularly given its role as primary regulator of rapidly growing and volatile markets.
The committee's top Democrat emphasized the need for adequate staffing, funding, and statutory authority to enable the CFTC to effectively perform its duties.