The US Commodity Futures Trading Commission is leveraging artificial intelligence to offset the impact of significant staffing reductions, according to Chairman Mike Selig's congressional testimony. Despite a decline of approximately 25% in the agency's workforce since 2025, largely due to President Donald Trump's demands for federal workforce cuts, the CFTC is tasked with overseeing burgeoning cryptocurrency and prediction markets. Selig emphasized the utility of AI in surveillance and investigations, referencing the integration of Microsoft's Copilot AI tool into various workflows. When questioned about staffing shortages, Selig asserted that the agency is operating more efficiently.
The House Agriculture Committee Chairman, Glenn 'GT' Thompson, expressed concern about the agency's capacity to handle its expanded responsibilities, particularly in digital assets and prediction markets, and sought assurance that Selig would request additional support if needed. Selig confirmed that proper market enforcement is a top priority, although the agency's budget request for the upcoming year includes only a modest increase in enforcement staff. The Digital Asset Market Clarity Act, currently under consideration in the Senate, would position the CFTC as a central authority over non-securities crypto trading, encompassing transactions in prominent assets like bitcoin and Ethereum. The agency is also claiming jurisdiction over prediction markets, which have grown substantially in recent years.
Selig's predecessor, Rostin Behnam, had consistently argued that the agency required more personnel to effectively oversee crypto and prediction markets. During Selig's tenure, prediction markets have faced accusations of insider trading, with some instances being addressed by the firms themselves.
The chairman acknowledged multiple ongoing investigations in prediction markets but declined to provide specifics. He emphasized the regulated platforms' role as the primary line of defense against illicit activities, with the CFTC serving as a secondary line of defense.
Selig reiterated the agency's 'zero tolerance' policy for market manipulation and insider trading. However, Representative Angie Craig, the committee's top Democrat, argued that the agency's workforce is overstretched, particularly given its role as the primary regulator of two rapidly growing and volatile markets. Craig advocated for providing the CFTC with sufficient staff, funding, and statutory authority to fulfill its obligations. The personnel declines at the regulator include the commission itself, which is legally required to have five members but has been left with only Selig.
The chairman was questioned about proceeding with major rules as a one-person commission and indicated that he would move forward with new regulations, including a preliminary rule process for US prediction markets and policy initiatives in crypto. Thompson announced plans to send a letter to the White House, along with Craig, to encourage prompt filling of commissioner positions with CFTC nominees from both parties.