US Regulator CFTC to Leverage AI for Crypto Registration Reviews

The US Commodity Futures Trading Commission, known for its openness to digital assets, is now embracing artificial intelligence to compensate for a significant reduction in its workforce. Chairman Mike Selig revealed in an interview that the agency is utilizing AI and automation to make up for personnel cuts, as part of President Donald Trump's initiative to reduce federal staffing. Selig, who is set to appear at Consensus 2026, noted that the agency is transitioning towards using technology to review registration applications and aid in market surveillance. The current registration process relies on manual document submission, but the CFTC is developing systems to automate this process, making it more efficient. AI tools will be used to review applications, flag certain issues for staff, and make their jobs easier and faster. The agency is also building in-house tools for reviewing swap data and market surveillance, and staff are being trained on using Microsoft's Copilot. Selig emphasized the importance of oversight in the crypto industry, citing the joint guidance with the Securities and Exchange Commission to establish a taxonomy for digital assets. This system of definitions will help market participants and consumers engage with crypto systems confidently. The CFTC is also taking action to police fraud, manipulation, and insider trading in crypto markets. Additionally, the agency has been involved in regulating prediction markets, which has been a contentious issue, with Selig maintaining that the CFTC has exclusive jurisdiction over these firms. The agency has sued several states and is taking enforcement action against bad actors in the markets, demonstrating its commitment to regulating the industry.