The US Commodity Futures Trading Commission is embracing artificial intelligence and automation to address its expanding oversight responsibilities, according to Chairman Mike Selig's congressional testimony. Despite a significant decline in the agency's workforce under the Trump administration, the CFTC is leveraging tools like AI to surveil and investigate markets.
Selig noted that about a quarter of the CFTC's staff has left since 2025, but the agency is adapting to regulate emerging areas like cryptocurrency and prediction markets. The CFTC is incorporating AI into its workflows, including the use of Microsoft's Copilot AI tool, to enhance productivity.
When questioned about staff declines, Selig asserted that the agency is operating more efficiently and effectively. The House Agriculture Committee expressed concerns about the CFTC's capacity to handle its growing responsibilities, particularly in digital assets and prediction markets. Chairman Glenn 'GT' Thompson sought assurance that Selig would request help if needed, and Selig agreed. The CFTC is prioritizing enforcement, with a focus on regulating non-securities crypto trading and prediction markets.
The agency is also claiming jurisdiction over prediction markets, which have drawn scrutiny over insider trading allegations. Selig acknowledged numerous ongoing investigations in prediction markets but did not provide further details. The CFTC is working to establish guardrails for US prediction markets and is pursuing policy initiatives in crypto.
The committee plans to send a letter to the White House to encourage the prompt filling of commissioner positions at the CFTC.