US Crypto Regulator to Leverage AI for Application Reviews

The US Commodity Futures Trading Commission, known for its openness to digital assets, is now turning to artificial intelligence to compensate for the loss of over a fifth of its workforce, according to Chairman Mike Selig. In an interview, Selig, who is scheduled to appear at Consensus 2026, stated that AI and automation will help offset personnel cuts resulting from President Donald Trump's efforts to reduce federal staffing. The agency, which is poised to become a leading US regulator for the crypto sector, is working towards utilizing technology to review registration applications and assist in market surveillance. Currently, the CFTC's registration process relies on manual document submission, but the agency is developing systems to automate this process, making it more efficient. AI tools will be used to review applications, flag issues for staff, and provide faster feedback. The agency is also training staff to use Microsoft's Copilot and developing in-house tools for reviewing swap data and market surveillance. Selig emphasized the importance of oversight in the crypto industry, highlighting the joint guidance with the Securities and Exchange Commission to establish a taxonomy for digital assets. This move aims to provide clarity for market participants, software developers, and consumers, enabling them to engage with crypto systems and assets with confidence. The CFTC is also taking action against fraud, manipulation, and insider trading in crypto markets, and Selig stressed that the agency will continue to monitor and enforce regulations in the prediction markets space.