US Crypto Regulatory Body to Leverage AI for Application Reviews

The US Commodity Futures Trading Commission, known for its openness to digital assets, is turning to artificial intelligence to compensate for a significant reduction in its workforce. Chairman Mike Selig revealed this in an interview, stating that the agency is leveraging AI and automation to make up for personnel cuts. The CFTC is transitioning towards using technology to review registration applications and assist in market surveillance, streamlining the currently manual document submission process. Selig emphasized that AI tools can review applications, flag issues for staff, and reject incomplete submissions, thereby increasing efficiency. The agency is also utilizing Microsoft's Copilot and 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 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. 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, including legal action against states and individuals accused of insider trading.