US Regulator Adopts AI to Streamline Crypto Registration Process

As the US Commodity Futures Trading Commission continues to expand its role in the digital assets sector, it is turning to artificial intelligence to offset the impact of workforce reductions. In a recent interview, Chairman Mike Selig discussed the agency's plans to utilize AI in reviewing registration applications and monitoring trading data, aiming to increase efficiency and reduce the burden on staff. The CFTC is currently developing systems to automate the manual submission of documents, with AI tools capable of flagging incomplete or inaccurate applications for further review. Selig highlighted the agency's commitment to embracing technology, including the use of Microsoft's Copilot and in-house tools for reviewing swap data and conducting market surveillance. The chairman emphasized the significance of providing clarity on digital asset taxonomy, allowing market participants to engage with crypto systems with confidence. Additionally, the CFTC is taking a firm stance on regulating prediction markets, with Selig affirming the agency's exclusive jurisdiction and commitment to enforcing against bad actors.