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 a significant reduction in its workforce. Chairman Mike Selig discussed the agency's plans in an interview, highlighting the potential of AI and automation to make up for personnel cuts. The CFTC is working on systems to automate the registration process, which currently relies on manual document submission. AI tools will be used to review applications, flag issues, and provide feedback, making the process more efficient. The agency is also developing in-house tools for reviewing swap data and market surveillance, with staff being trained on Microsoft's Copilot. One of Selig's key initiatives has been oversight of the crypto industry, including the creation of a 'taxonomy' for digital assets in conjunction with the Securities and Exchange Commission. This system of definitions aims to provide clarity on regulatory jurisdictions for different subsets of crypto. The CFTC has also been involved in the regulation of prediction markets, with Selig taking a firm stance on the agency's exclusive jurisdiction over these businesses. The agency has sued several states and is taking action against bad actors in the markets, with a recent case involving a US Army Special Forces soldier accused of insider trading. Selig emphasized the agency's commitment to enforcing regulations and taking action against fraudulent activities in the crypto and prediction markets.