The US Commodity Futures Trading Commission is embracing artificial intelligence and automation to tackle its growing responsibilities, according to Chairman Mike Selig's congressional testimony, despite a decline in the agency's workforce under the Trump administration. Approximately a quarter of the CFTC's staff has departed since 2025, due to President Trump's demands for federal workforce reductions. However, the agency is also being tasked with regulating the rapidly expanding cryptocurrency and prediction markets. Selig stated that AI tools, such as Microsoft's Copilot, are being leveraged to enhance surveillance and investigations, and that the agency is operating more efficiently despite staff declines.
The CFTC is being called upon to regulate digital assets and prediction markets, with Chairman Glenn 'GT' Thompson seeking assurance that Selig will request assistance if the need for additional staff arises. Selig affirmed that proper market enforcement 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 like bitcoin and Ethereum. The agency is also claiming jurisdiction over prediction markets, which have seen significant growth and accusations of insider trading.
Selig acknowledged numerous ongoing investigations in prediction markets but did not 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. Representative Angie Craig argued that the agency's workforce is overstretched, particularly given its role as the primary regulator of two rapidly growing and volatile markets.
Craig emphasized the need for the CFTC to receive adequate staff, funding, and statutory authority to perform its duties effectively.