US Commodity Futures Trading Commission to Leverage AI for Crypto Registration Reviews

The US Commodity Futures Trading Commission, known for its open approach to digital assets, is now embracing artificial intelligence to compensate for a significant reduction in its workforce, according to Chairman Mike Selig. In an interview with CoinDesk, Selig, who is scheduled to appear at Consensus 2026 in Miami, stated that AI and automation can offset the impact of personnel cuts under President Donald Trump's initiative 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 can review applications, flag issues for staff, and make their jobs easier and faster, while also rejecting incomplete or incorrect submissions. Selig mentioned that his staff is being trained to use Microsoft's Copilot, and the agency is also creating in-house tools for reviewing swap data and market surveillance purposes. The chairman has been at the helm of the US derivatives regulator for four months and has taken a proactive approach to emerging technologies, including crypto and prediction markets oversight. One of Selig's key initiatives has been to establish oversight of the crypto industry, and he believes that the joint guidance with the Securities and Exchange Commission to create a taxonomy for digital assets has been a significant development. This taxonomy provides a system of definitions for how each subset of crypto fits into the range of regulatory jurisdictions, allowing market participants, software developers, and consumers to engage with crypto systems and assets with confidence. Selig also discussed the agency's stance on prediction markets, which has been contentious, particularly with regards to companies such as Kalshi, Polymarket, Crypto.com, Coinbase, and Gemini. The CFTC has taken action against several states that have challenged these companies for violating state gaming laws, and Selig has maintained that the CFTC has exclusive jurisdiction over these firms. Recently, the agency joined a Department of Justice case against a US Army Special Forces soldier accused of placing prediction-market bets on military action in Venezuela, and Selig emphasized that the CFTC will continue to monitor and take action against bad actors in the markets.