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 offset the impact of significant workforce reductions, as stated by Chairman Mike Selig in an interview. Selig, who is set to appear at Consensus 2026, noted that AI and automation will help mitigate the effects of personnel cuts, which were part of President Donald Trump's efforts to reduce federal staffing. The agency, poised to become a leading US regulator for the crypto sector, is leveraging technology to review registration applications and enhance market surveillance. Currently, the CFTC's registration process relies on manual document submissions, but the agency is working 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 utilizing Microsoft's Copilot and developing in-house tools for reviewing swap data and market surveillance. Under Selig's leadership, the CFTC has been actively involved in overseeing emerging technologies, including crypto and prediction markets. A key initiative has been the creation of a 'taxonomy' for digital assets, providing clarity on regulatory jurisdictions. The agency has also been involved in contentious issues, such as prediction markets, with Selig maintaining that the CFTC has exclusive jurisdiction over these firms. The agency has taken enforcement actions, including a recent case against a US Army Special Forces soldier accused of insider trading. Selig emphasized that the CFTC is committed to taking action against bad actors in the markets and will continue to monitor and enforce regulations.