The US Commodity Futures Trading Commission is utilizing artificial intelligence and automation to address its expanding regulatory responsibilities, as stated by Chairman Mike Selig in congressional testimony. This comes as the agency faces a substantial decline in workforce under the Trump administration.

Despite a quarter of the CFTC's staff departing since 2025, the commission is tasked with overseeing burgeoning cryptocurrency and prediction markets. Selig emphasized the importance of AI tools in surveillance and investigations, referencing the use of Microsoft's Copilot AI. When questioned about staffing reductions, Selig asserted that the agency is operating more efficiently. The House Agriculture Committee expressed concerns about the CFTC's capacity to regulate digital assets and prediction markets effectively, with Chairman Glenn 'GT' Thompson seeking assurance that Selig would request assistance 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 elevate the CFTC's role in non-securities crypto trading. The agency is also claiming jurisdiction over prediction markets, which have grown significantly in recent years.

Selig's predecessor, Rostin Behnam, had previously argued that the CFTC required more resources to effectively oversee crypto and prediction markets. During Selig's tenure, the prediction markets have faced accusations of insider trading, prompting the CFTC to launch numerous investigations. While Selig did not provide specifics on the investigations, he emphasized the importance of regulated platforms in preventing illicit activities and stated that the CFTC has a zero-tolerance policy for market manipulation.

Representative Angie Craig expressed concerns that the agency's workforce is overstretched, particularly given its role as the primary regulator of rapidly growing and volatile markets. The committee's top Democrat argued that the CFTC requires additional staff, funding, and statutory authority to fulfill its obligations.

The White House has been urged to fill vacant commissioner positions to ensure the CFTC can operate effectively.