US Crypto Regulatory Body to Utilize AI for Application Review

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 discussed this development in an interview, highlighting the agency's efforts to become a leading regulator in the crypto sector. Selig, who is set to appear at Consensus 2026, explained that AI and automation will be used to review registration applications and assist in market surveillance, making the process more efficient. The current manual submission of documents will be replaced by automated systems, with AI tools flagging incomplete or incorrect applications for staff review. The agency is also training staff to use Microsoft's Copilot and developing in-house tools for reviewing swap data and market surveillance. 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 provide clarity for market participants, software developers, and consumers, enabling them to engage with crypto systems and assets with confidence. The agency is also taking action against fraud, manipulation, and insider trading in crypto markets. Additionally, Selig has been involved in a contentious issue regarding prediction markets, with the CFTC asserting its exclusive jurisdiction over these businesses. The agency has sued several states and is taking enforcement action against bad actors in the markets, with Selig stating that the CFTC is committed to protecting the integrity of the markets.