The US Commodity Futures Trading Commission is embracing artificial intelligence and automation to tackle its growing oversight responsibilities, particularly in the areas of cryptocurrency and prediction markets, according to testimony from Chairman Mike Selig. Despite a significant decline in the agency's workforce under the Trump administration, with about a quarter of staff leaving since 2025, the CFTC is leveraging tools like AI to enhance its surveillance and investigative capabilities. Selig emphasized the importance of efficient and effective operations, stating that the agency is 'running more efficiently and effectively' despite staffing cuts.
The CFTC is currently regulating new and rapidly expanding areas, including cryptocurrency and prediction markets, with Chairman Selig acknowledging 'numerous investigations ongoing' in the latter. The agency is working to establish guardrails for US prediction markets and is pursuing policy initiatives in crypto, with Selig committing to a 'zero tolerance' policy for illicit market activity. However, concerns have been raised about the agency's staffing levels, with Representative Angie Craig arguing that the agency's workforce is 'stretched too thin' and that additional staff, funding, and statutory authority are needed to effectively regulate these markets.