The US Commodity Futures Trading Commission is leveraging artificial intelligence and automation to tackle its growing oversight responsibilities, according to Chairman Mike Selig's congressional testimony. Despite a significant decline in the agency's workforce under President Donald Trump, the CFTC is being tasked with regulating the rapidly expanding cryptocurrency and prediction markets. Selig noted that AI tools, such as Microsoft's Copilot, are being utilized to enhance productivity and support investigations. When questioned about staffing cuts, Selig asserted that the agency is operating more efficiently and effectively.
Committee Chairman Glenn 'GT' Thompson expressed concerns about the agency's ability to handle its increased workload, prompting Selig to assure him that he would request additional support if needed. The CFTC is currently pursuing a preliminary rule process to establish guardrails for US prediction markets and has initiated numerous investigations into potential insider trading and market manipulation. The agency's budget request for next year includes a request for only three additional enforcement staff, which has raised concerns among lawmakers about the CFTC's ability to effectively regulate the growing markets. 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 involving leading assets such as bitcoin and Ethereum.
Selig's predecessor, former Chairman Rostin Behnam, had previously argued that the agency required more resources to effectively oversee the crypto and prediction markets. The CFTC is also claiming jurisdiction over prediction markets, which have drawn scrutiny due to accusations of insider trading and concerns about the potential for illicit activity. Selig acknowledged the ongoing investigations but declined to provide further details.
The committee's top Democrat, Representative Angie Craig, argued that the agency's workforce is stretched too thin and that the CFTC requires additional staff, funding, and statutory authority to effectively regulate the markets. The White House has been criticized for leaving the commission with only one member, Selig, despite the law requiring five members, including two from the minority party. Selig was questioned about the impact of this on the agency's rulemaking process and asserted that he would continue to move forward with new regulations, including a preliminary rule process for US prediction markets.