US Regulator to Utilize AI in Reviewing Crypto Registration Applications

As a prominent advocate for digital assets, the US Commodity Futures Trading Commission is now embracing artificial intelligence to compensate for the loss of over a fifth of its workforce, as stated by Chairman Mike Selig in an interview. Selig, who is scheduled to speak at Consensus 2026, mentioned that AI and automation can offset the impact of personnel cuts under the Trump administration's initiative to reduce federal staffing. The agency, poised to become a leading US regulator for the crypto sector, is working towards utilizing AI to review registration applications and assist in market surveillance. Currently, the CFTC's registration process relies on manual document submission, which Selig aims to automate, making it more efficient. AI tools can review applications, flag specific issues for staff, and expedite the feedback process. The agency is also developing in-house tools for reviewing swap data and market surveillance, demonstrating its commitment to embracing technology. Under Selig's leadership, the agency has taken significant steps in overseeing emerging technologies, including crypto and prediction markets. A key initiative has been the joint guidance with the Securities and Exchange Commission to establish a taxonomy for digital assets, providing clarity on regulatory jurisdictions. This development is expected to enable market participants to engage with crypto systems with confidence, while the CFTC will focus on policing fraud and manipulation in crypto markets. Additionally, the agency has been involved in contentious issues surrounding prediction markets, with Selig maintaining that the CFTC has exclusive jurisdiction over these firms. The agency has taken enforcement action against bad actors in the prediction markets, demonstrating its commitment to regulating these markets seriously.