US Crypto Regulatory Body to Utilize AI for Application Review

The US Commodity Futures Trading Commission, known for its openness to digital assets, is now embracing artificial intelligence to compensate for its reduced workforce. According to Chairman Mike Selig, the agency is developing new technologies to augment its capabilities, including the use of AI for monitoring trading data and reviewing registration applications. Selig, who is set to speak at Consensus 2026, stated that the CFTC is transitioning from a manual document submission process to an automated system, leveraging AI tools to streamline the review process and flag incomplete or inaccurate applications. The agency is also utilizing Microsoft's Copilot and developing in-house tools for reviewing swap data and conducting market surveillance. Under Selig's leadership, the CFTC has made significant strides in overseeing emerging technologies, including crypto and prediction markets. A notable initiative has been the establishment of a crypto taxonomy in collaboration with the Securities and Exchange Commission, providing clarity on digital asset definitions and regulatory jurisdictions. The CFTC has also taken a firm stance on its exclusive jurisdiction over prediction markets, engaging in lawsuits with states that have challenged companies like Kalshi and Polymarket for violating state gaming laws. Furthermore, the agency has joined a Department of Justice case against a US Army soldier accused of insider trading and using confidential government information for prediction-market bets. Selig emphasized the CFTC's commitment to enforcing regulations and taking action against malicious actors in the markets, underscoring the agency's dedication to protecting consumers and maintaining market integrity.