The US Commodity Futures Trading Commission is embracing artificial intelligence and automation to address its expanded regulatory duties, according to testimony from Chairman Mike Selig, despite a substantial decline in the agency's workforce under the Trump administration. With approximately a quarter of the CFTC's staff departing since 2025, the agency is leveraging AI tools, such as Microsoft's Copilot, to enhance surveillance and investigation capabilities.
Selig assured lawmakers that the agency is operating more efficiently, despite staff reductions. The CFTC is tasked with regulating the rapidly growing cryptocurrency and prediction markets, with Chairman Selig confirming 'numerous investigations' are ongoing in the latter. The agency is adopting a 'zero tolerance' policy towards illicit market activity, with Selig emphasizing that offenders will face the full force of the law.
However, concerns have been raised about the agency's capacity to effectively oversee these markets, given its reduced staffing levels and lack of clear statutory authority. Representative Angie Craig argued that the CFTC's workforce is overstretched, particularly in light of its role as primary regulator of two of the fastest-growing and most volatile markets.
The committee's top Democrat emphasized the need for increased staffing, funding, and clear authority to enable the CFTC to fulfill its duties. Chairman Selig acknowledged the challenges, but expressed his commitment to prioritizing enforcement and moving forward with rulemaking, including a preliminary rule process for US prediction markets.
The committee plans to send a letter to the White House, urging prompt filling of commissioner positions to ensure the CFTC can operate effectively.