US Regulator CFTC to Utilize AI for Crypto Registration Application Review

The US Commodity Futures Trading Commission, known for its open approach 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 with CoinDesk, Selig, who is scheduled to speak at Consensus 2026 in Miami, discussed how AI and automation can make up for personnel cuts implemented under President Donald Trump's initiative to reduce federal staffing. The agency, which is poised to become a leading US regulator for the crypto sector, is working towards leveraging technology to review registration applications and assist in market surveillance. Currently, the CFTC's registration process relies on manual document submission, 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 reject incomplete or incorrect submissions. The agency is also training staff to use Microsoft's Copilot and developing in-house tools for reviewing swap data and market surveillance. Selig emphasized the importance of oversight in the crypto industry, particularly in the absence of new legislation from Congress. A significant initiative has been the joint guidance with the Securities and Exchange Commission to establish a taxonomy for digital assets, providing clarity on regulatory jurisdictions. The CFTC is committed to policing fraud, manipulation, and insider trading in crypto markets. Additionally, the agency has been involved in contentious issues surrounding prediction markets, with Selig maintaining that the CFTC has exclusive jurisdiction over these firms. The agency has taken action against bad actors and will continue to monitor and enforce regulations in this area.