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 with CoinDesk. Selig, who is scheduled to speak at Consensus 2026 in Miami, emphasized that AI and automation can help offset personnel cuts implemented under President Donald Trump's initiative to reduce federal staffing. The agency, which is poised to become a leading US regulator for the crypto sector, is working towards leveraging technology to review registration applications and aid in market surveillance. Currently, the CFTC's registration process relies on manual document submissions, but Selig noted that they are 'building out systems to automate that, making it much more efficient.' AI tools can review applications, flag issues for staff, and expedite the feedback process. The agency is also training staff to use Microsoft's Copilot and developing in-house tools for reviewing swap data and market surveillance. Selig has been at the helm of the US derivatives regulator for four months and has made significant strides in overseeing emerging technologies, including crypto and prediction markets. A key initiative has been the joint guidance with the Securities and Exchange Commission to establish a 'taxonomy' for digital assets, providing clarity on regulatory jurisdictions. This development is expected to enable market participants, software developers, and consumers to engage with crypto systems with confidence. The CFTC is also taking action to police fraud, manipulation, and insider trading in crypto markets. Furthermore, Selig's stance on prediction markets has been contentious, with the agency asserting its exclusive jurisdiction over these firms. The CFTC has sued several states and is actively monitoring and taking action against bad actors in these markets.