US Crypto Regulatory Body to Utilize AI for Application Reviews

The US Commodity Futures Trading Commission, known for its openness to digital assets, is now embracing artificial intelligence to compensate for the loss of over a fifth of its workforce, according to Chairman Mike Selig. In an interview, Selig, who is set to speak at Consensus 2026, mentioned that AI and automation can offset personnel cuts resulting from President Donald Trump's efforts to reduce federal staffing. The agency, poised to become a leading US regulator for the crypto sector, is working towards leveraging technology to review registration applications and assist in market surveillance. Currently, the CFTC's registration process relies on manual document submission, but Selig stated that they are 'building out systems to automate that, making it much more efficient.' AI tools can review applications, flag certain issues for staff, and make their jobs easier and faster. The agency is also training staff to use Microsoft's Copilot and developing in-house tools for reviewing swap data and market surveillance. Selig highlighted the importance of oversight of the crypto industry, including the creation of a 'taxonomy' for digital assets, which provides clarity on regulatory jurisdictions. The chairman also discussed the agency's stance on prediction markets, emphasizing its exclusive jurisdiction and commitment to taking action against bad actors. With the use of AI, the CFTC aims to enhance its regulatory capabilities and provide clarity for market participants and consumers.