The US Commodity Futures Trading Commission is leveraging artificial intelligence and automation to navigate significant new responsibilities, according to Chairman Mike Selig's congressional testimony, despite a substantial 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 demand for federal workforce reductions. However, the CFTC is also being tasked with overseeing the rapidly expanding cryptocurrency and prediction markets. Selig emphasized that AI tools will play a crucial role in surveillance and investigations, citing the widespread use of Microsoft's Copilot AI tool as a key productivity aid.
When questioned about staffing declines, Selig asserted that the agency is operating more efficiently and effectively. Committee Chairman Glenn 'GT' Thompson expressed concern about the CFTC's ability to handle its growing responsibilities, particularly with regards to digital assets and prediction markets.
Selig assured the committee that he would request assistance if the need for additional qualified staff arises. The CFTC is currently pursuing a preliminary rule process to establish guidelines for US prediction markets, and Selig has also initiated policy initiatives in the crypto space. The agency's budget request for the upcoming year includes a modest increase in enforcement staff, from 105 to 108 people, which is still below the 140 personnel the division had in 2025.
The Digital Asset Market Clarity Act, currently being debated 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 asserting its jurisdiction over prediction markets, such as those operated by Polymarket and Kalshi, which have experienced exponential growth. Selig's predecessor, former Chairman Rostin Behnam, had consistently argued that the agency required more resources to effectively oversee the crypto and prediction markets. During Selig's tenure, the prediction markets have faced accusations of insider trading, with some cases being addressed by the firms themselves.
The chairman acknowledged 'numerous ongoing investigations' in the prediction markets but declined to provide further details. He emphasized that regulated platforms serve as the primary line of defense against insider trading, fraud, and market manipulation, while the CFTC acts as a secondary line of defense. Selig stated that his agency has a 'zero tolerance' policy for illicit market activity and will take decisive action against those who engage in such behavior. 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 of the fastest-growing and most volatile markets.
Craig emphasized the need to provide the CFTC with sufficient staff, funding, and statutory authority to effectively perform its duties. The personnel decline at the regulator includes the commission itself, which is supposed 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 will move forward with new regulations. The CFTC is pursuing a preliminary rule process to establish guardrails for US prediction markets, and Selig has also pushed policy initiatives in crypto.
Committee Chairman Thompson announced that he and Craig will be sending a letter to the White House to encourage the prompt filling of commissioner positions with CFTC nominees from both parties.