The U.S. Commodity Futures Trading Commission (CFTC) is increasingly relying on artificial intelligence and automation to manage its expanding oversight duties, according to a statement by Chairman Mike Selig during congressional testimony. This shift comes despite significant staffing reductions under President Donald Trump’s tenure, with the agency losing about 25% of its workforce since 2025.
Amid these challenges, the CFTC faces new responsibilities in regulating burgeoning cryptocurrency and prediction markets. “AI tools are crucial for surveillance and investigations,” Selig informed the House Agriculture Committee during a Thursday hearing, highlighting Microsoft’s Copilot AI as an example of such productivity enhancements. When questioned about staffing declines, he asserted that the agency is now operating more efficiently.
Committee Chairman Glenn “GT” Thompson emphasized the growing demands placed on the CFTC regarding digital assets and prediction markets, seeking assurance from Selig for future staff increases if needed. Selig confirmed his commitment to expanding resources as necessary, stating proper market enforcement remains a priority despite next year’s budget requesting only three additional enforcement personnel.
The Digital Asset Market Clarity Act under Senate consideration would elevate the CFTC’s role in non-securities crypto trading, encompassing major assets like Bitcoin and Ethereum. The agency also claims primary jurisdiction over prediction markets, which have expanded significantly from millions to billions in transactions. Previous Chairman Rostin Behnam had frequently argued for more resources to oversee these domains.
Selig acknowledged ongoing investigations into insider trading within prediction markets but refrained from detailing their scope. He emphasized the role of regulated platforms as first-line defenses against market abuses, with the CFTC acting as a secondary safeguard. “We have zero tolerance for illicit activities,” Selig stated, underscoring that violations will lead to legal action.
However, Representative Angie Craig argued that the CFTC’s workforce is overextended given its regulatory responsibilities in fast-growing markets. She stressed the need for adequate staffing and funding, as well as clear statutory authority for the agency. The personnel decline also affects the commission itself, which legally should have five members but currently includes only Selig.
Throughout the oversight hearing, Selig was questioned about proceeding with major regulations as a one-person commission. “We cannot delay rulemaking,” he declared, indicating his intent to advance new regulations independently. The CFTC is developing preliminary rules for U.S. prediction markets and has initiated policy efforts in cryptocurrency regulation.