The US Commodity Futures Trading Commission is embracing artificial intelligence and automation to tackle its expanding responsibilities, including the oversight of cryptocurrency and prediction markets, despite a significant decline in its workforce. According to Chairman Mike Selig's testimony to Congress, the agency has lost about a quarter of its staff since 2025 due to President Donald Trump's demands for federal workforce reductions. However, the CFTC is leveraging AI tools, such as Microsoft's Copilot, to enhance its surveillance and investigative capabilities.
Selig assured lawmakers that the agency is operating more efficiently and effectively, despite the staffing cuts. The CFTC is currently regulating new and rapidly growing areas, including cryptocurrency and prediction markets, with Chairman Selig acknowledging 'numerous investigations ongoing' in these markets. The agency is working to set up guardrails for US prediction markets and has pushed policy initiatives in crypto, but faces challenges in its role as the primary regulator of these volatile markets. Lawmakers have expressed concerns about the agency's stretched workforce and have called for increased funding and staffing to support its regulatory efforts.