US Financial Regulator to Utilize AI for Crypto Application Reviews

The US Commodity Futures Trading Commission, known for its openness to digital assets, is now embracing artificial intelligence to compensate for staffing reductions. Chairman Mike Selig stated that AI and automation will help offset personnel cuts, allowing the agency to efficiently review registration applications and conduct market surveillance. The current manual registration process will be automated, making it more efficient and enabling AI tools to review applications, flag issues, and provide faster feedback. Selig's staff is being trained to use Microsoft's Copilot, and the agency is also developing in-house tools for reviewing swap data and market surveillance. The CFTC has made significant strides in overseeing emerging technologies, including crypto and prediction markets. A joint guidance with the Securities and Exchange Commission has established a taxonomy for digital assets, providing clarity on regulatory jurisdictions. The agency is committed to policing fraud, manipulation, and insider trading in crypto markets and is taking a strong stance on its exclusive jurisdiction over prediction markets.