US Regulator 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 offset the impact of significant workforce reductions. Chairman Mike Selig, who is scheduled to speak at Consensus 2026, mentioned that AI and automation will help compensate for personnel cuts as part of President Donald Trump's initiative to decrease federal staffing. The agency, poised to become a leading regulator in the US crypto sector, is moving towards utilizing technology for registration application reviews and market surveillance. Currently, the CFTC's registration process involves manual document submissions, which Selig aims to automate for greater efficiency. AI tools will be employed to review applications, flag issues for staff, and accelerate feedback and rejection processes for incomplete submissions. The chairman noted that his team is being trained to use Microsoft's Copilot, and the agency is also developing in-house tools for reviewing swap data and market surveillance. Since taking the helm four months ago, Selig has led the derivatives regulator into the forefront of emerging technologies, including crypto and prediction markets oversight. 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 and consumers to engage with crypto systems confidently. The CFTC is also taking action against fraud, manipulation, and insider trading in crypto markets. Additionally, Selig has been involved in contentious issues surrounding prediction markets, defending the agency's exclusive jurisdiction over these firms and suing states that have challenged them for violating state gaming laws. The CFTC has joined a Department of Justice case against a US Army soldier accused of using confidential government information for prediction-market bets, with Selig emphasizing the agency's commitment to enforcing regulations and taking action against bad actors in the markets.