US Crypto Regulatory Body to Leverage 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, as stated by Chairman Mike Selig in an interview. Selig, who is scheduled to speak at Consensus 2026, emphasized that AI and automation are being utilized to make up for personnel cuts. The agency is working towards employing AI to review registration applications and aid in market surveillance, aiming to become a leading regulator in the US crypto sector. Currently, the CFTC's registration process relies on manual document submissions, but the agency is developing systems to automate this process, making it more efficient. AI tools will be used to review applications, flag issues for staff, and provide faster feedback. The agency is also building in-house tools for reviewing swap data and market surveillance purposes. In his four months as chairman, Selig has focused on embracing emerging technologies, including crypto and prediction markets oversight. A significant initiative has been the joint guidance with the Securities and Exchange Commission to establish a taxonomy for digital assets, providing clarity on regulatory jurisdictions. The CFTC is also taking action against fraud and manipulation in crypto markets. Additionally, the agency has been involved in contentious issues surrounding prediction markets, 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 these markets.