US Regulator Adopts AI to Streamline Crypto Registration Process

The US Commodity Futures Trading Commission, known for its embrace of digital assets, is now turning to artificial intelligence to compensate for the loss of over a fifth of its workforce, according to Chairman Mike Selig in an interview. Selig, set to appear at Consensus 2026, highlighted the agency's push to utilize AI and automation to review registration applications, facilitate market surveillance, and make up for personnel cuts under the federal staffing reduction campaign. The current manual registration process is being revamped with automated systems to improve efficiency. AI tools will be used to review applications, flag issues for staff, and reject incomplete submissions, thereby speeding up the feedback process. Selig mentioned that his staff is being trained on Microsoft's Copilot, and in-house tools are being developed for reviewing swap data and market surveillance. Since taking the helm four months ago, Selig has led the agency into overseeing emerging technologies, including crypto and prediction markets. A significant initiative has been the joint guidance with the SEC to establish a 'taxonomy' for digital assets, providing clarity on regulatory jurisdictions. This move is expected to allow market participants to engage with crypto systems with confidence, while the CFTC will police fraud, manipulation, and insider trading in crypto markets. The agency's stance on prediction markets has been contentious, with Selig asserting the CFTC's exclusive jurisdiction over these firms, leading to conflicts with states and lawsuits. Recently, the CFTC joined a DOJ case against a US Army soldier accused of insider trading in prediction markets, demonstrating the agency's commitment to enforcing regulations and taking action against bad actors.