US Crypto Regulatory Body to Utilize AI for Application Reviews

The US Commodity Futures Trading Commission, known for its openness to digital assets, is embracing artificial intelligence to compensate for a significant reduction in its workforce. Chairman Mike Selig, who is scheduled to speak at Consensus 2026, stated that AI and automation will help mitigate the effects of personnel cuts. The agency is working on implementing AI to review registration applications, enhance market surveillance, and streamline the registration process, which currently relies on manual document submissions. Selig noted that AI tools can review applications, identify potential issues, and provide feedback more efficiently. The CFTC is also developing in-house tools for reviewing swap data and conducting market surveillance. Furthermore, the agency has been at the forefront of regulating emerging technologies, including crypto and prediction markets. A key initiative has been the establishment of a 'taxonomy' for digital assets, providing clarity on regulatory jurisdictions. The CFTC has also been involved in contentious issues, such as regulating prediction markets, and has taken a firm stance on its exclusive jurisdiction over these firms. The agency has filed lawsuits against states that have challenged companies like Kalshi and Polymarket for allegedly violating state gaming laws. Selig emphasized the CFTC's commitment to policing fraud and manipulation in crypto markets, and the agency has recently joined a Department of Justice case against an individual accused of insider trading in prediction markets.