US Crypto Regulatory Body to Utilize AI for Application Reviews

The US Commodity Futures Trading Commission, known for its openness to digital assets, is turning to artificial intelligence to compensate for a significant reduction in its workforce. Chairman Mike Selig, who is scheduled to speak at Consensus 2026, stated that the agency is developing systems to automate the registration process, making it more efficient. AI tools will be used to review applications, identify potential issues, and prioritize them for staff review, thereby streamlining the process and reducing the workload. The CFTC is also creating in-house tools for reviewing swap data and conducting market surveillance, demonstrating its commitment to embracing technology. Under Selig's leadership, the agency has made significant strides in overseeing emerging technologies, including crypto and prediction markets. A key initiative has been the establishment of a 'taxonomy' for digital assets, providing clarity on regulatory jurisdictions. The CFTC has also taken a firm stance on prediction markets, asserting its exclusive jurisdiction and taking action against bad actors. With the use of AI and automation, the agency aims to enhance its regulatory capabilities and provide a more efficient experience for market participants.