US Crypto Regulatory Body to Utilize AI for Application Review

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 in an interview. Selig, who is scheduled to appear at Consensus 2026, noted that AI and automation will help offset personnel cuts resulting from 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 aid in market surveillance. Currently, the CFTC's registration process relies on manual document submissions, but Selig stated that they are developing systems to automate this process, making it more efficient. AI tools can review applications, flag issues for staff, and accelerate the feedback and rejection process for incomplete submissions. The agency is also utilizing in-house tools for reviewing swap data and market surveillance, and staff are being trained on Microsoft's Copilot. Under Selig's leadership, the agency has been actively involved in overseeing emerging technologies, including crypto and prediction markets. A key initiative has been the joint guidance with the Securities and Exchange Commission to establish a taxonomy for digital assets, providing clarity on regulatory jurisdictions. This development is expected to enable market participants, developers, and consumers to engage with crypto systems confidently. The CFTC is also taking action to police fraud, manipulation, and insider trading in crypto markets. Additionally, Selig has been involved in a contentious issue regarding prediction markets, with the agency asserting its exclusive jurisdiction over these firms. The CFTC has sued several states and is taking enforcement action against bad actors in these markets, demonstrating its commitment to regulating this space.