US Crypto Regulatory Body to Utilize AI for Application Review

The US Commodity Futures Trading Commission, known for its forward-thinking approach to digital assets, is now embracing artificial intelligence to compensate for a significant reduction in its workforce. According to Chairman Mike Selig, the agency is on the path to becoming a leading regulator in the US crypto sector and is leveraging technology to review registration applications and aid in market surveillance. The current manual registration process is being overhauled with automated systems, enabling AI tools to review applications, flag issues, and streamline the feedback process. Selig's team is being trained on Microsoft's Copilot, and in-house tools are being developed for reviewing swap data and market surveillance. A key initiative under Selig's leadership has been the oversight of the crypto industry, including the creation of a digital asset taxonomy in conjunction with the Securities and Exchange Commission. This move is expected to provide clarity for market participants and consumers, allowing them to engage with crypto systems with confidence. The agency is also taking a firm stance on regulating prediction markets, with Selig asserting the CFTC's exclusive jurisdiction over these businesses. Recent actions include joining a Department of Justice case against an individual accused of insider trading and placing prediction-market bets using confidential government information.