US Regulator to Utilize AI for Crypto 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. According to Chairman Mike Selig, the agency is leveraging AI and automation to review registration applications and aid in market surveillance, following a substantial staff cut under President Donald Trump's initiative to reduce federal staffing. Selig, who is set to appear at Consensus 2026, stated that the CFTC is transitioning from manual document submission to automated systems, utilizing AI tools to streamline the process and make it more efficient. The AI can flag incomplete applications, reject those with blank spaces or inadequate descriptions, and prioritize reviews. The staff is being trained on Microsoft's Copilot, and the agency is also developing in-house tools for reviewing swap data and market surveillance. Under Selig's leadership, the CFTC has been proactive in overseeing emerging technologies, including crypto and prediction markets. A significant achievement has been the joint guidance with the SEC to establish a taxonomy for digital assets, providing clarity on regulatory jurisdictions. The agency is committed to policing fraud and manipulation in crypto markets and has taken a firm stance on its exclusive jurisdiction over prediction markets, defending against state challenges. Recently, the CFTC joined a Department of Justice case against a US Army soldier accused of insider trading in prediction markets, demonstrating its commitment to enforcing regulations and taking action against bad actors.