US Crypto Regulatory Body 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 a significant reduction in its workforce, as stated by Chairman Mike Selig in an interview. Selig, who is scheduled to speak at Consensus 2026, mentioned that the agency is working on utilizing AI and automation to review registration applications and assist in market surveillance, thereby streamlining the process and making it more efficient. The current registration process involves manual document submission, but the CFTC is working on building systems to automate this process, making it easier for staff to review applications and provide feedback. AI tools will be used to flag incomplete or incorrect applications, allowing staff to focus on more complex cases. 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 CFTC has taken significant steps in overseeing emerging technologies, including crypto and prediction markets. A key initiative has been the creation of a 'taxonomy' for digital assets, providing clarity on regulatory jurisdictions. The agency has also taken a firm stance on regulating prediction markets, which has led to contention with some states. The CFTC is committed to taking action against bad actors in the market and will continue to monitor and enforce regulations.