The US Commodity Futures Trading Commission is embracing artificial intelligence and automation to tackle its expanded oversight responsibilities, according to testimony from Chairman Mike Selig, despite a significant 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 demands for federal workforce reductions. However, the CFTC is also responsible for regulating the rapidly growing cryptocurrency and prediction markets.
Selig stated that AI tools will be instrumental in surveillance and investigations, and the agency is integrating these tools into its workflows. 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 new responsibilities, given the staffing reductions.
Selig assured him that if additional qualified staff are needed, he will request assistance from the committee. The CFTC is prioritizing enforcement, with a focus on digital assets and prediction markets. The agency is also claiming jurisdiction over prediction markets, which have grown significantly in recent years.
Selig acknowledged numerous ongoing investigations in these markets but did not provide further details. He emphasized the importance of regulated platforms in preventing insider trading, fraud, and market manipulation.
The CFTC has a zero-tolerance policy for illicit market activity, and Selig warned that those engaging in such behavior will face severe consequences. Representative Angie Craig argued that the agency's workforce is overstretched, particularly given its role in regulating two of the fastest-growing and most volatile markets. She emphasized the need for the CFTC to receive adequate staffing, funding, and statutory authority to perform its duties effectively. The regulator's personnel declines include the commission itself, which is currently operating with only one member, Chairman Selig.
He was questioned about the impact of this on the agency's rulemaking process and stated that he will proceed with new regulations despite the lack of commissioners. The CFTC is pursuing a preliminary rule process to establish guardrails for US prediction markets and is also pushing policy initiatives in crypto.
Committee Chairman Thompson announced plans to send a letter to the White House, encouraging them to fill the vacant commissioner positions with nominees from both parties.