The U.S. Commodity Futures Trading Commission (CFTC) is incorporating artificial intelligence to manage its workload, according to Chairman Mike Selig in a CoinDesk interview. This move comes after the agency reduced over 20% of its workforce during President Donald Trump’s tenure, aiming to streamline processes despite staff reductions.
Selig, slated for Consensus 2026 in Miami next week, explained that AI and automation could compensate for these cuts. He emphasized the CFTC’s transition towards technological solutions for reviewing crypto registration applications and enhancing market surveillance. Presently, document submissions are manual; however, Selig mentioned efforts to automate this system for increased efficiency.
“AI can review applications, identify issues for staff consideration, expedite feedback processes, and even reject incomplete entries,” he explained. AI could detect errors like blank fields or inadequate descriptions, thus prioritizing more complete applications.
Currently, the CFTC staff is training on Microsoft’s Copilot, while developing proprietary tools to analyze swap data and monitor market activities. Selig highlighted these innovations as part of a broader embrace of technology under his leadership since joining four months ago.
The chairman has been proactive in emerging technologies, including crypto oversight without new congressional legislation. A key step was the joint guidance with the Securities and Exchange Commission establishing a “taxonomy” for digital assets, delineating regulatory jurisdictions to facilitate market participation.
Selig stated this clarity allows stakeholders to navigate crypto systems confidently without inadvertently breaching securities laws. While not yet formal policy, it outlines CFTC responsibilities in combating fraud and manipulation within crypto markets.
His role has also extended to prediction markets with companies like Kalshi, Polymarket, Crypto.com, Coinbase, and Gemini. Selig’s stance that the CFTC exclusively regulates these entities has sparked state-level disputes over gaming laws, leading to lawsuits against states such as New York for jurisdictional challenges.
The CFTC recently joined a Department of Justice case involving U.S. Army Special Forces soldier Gannon Ken Van Dyke, who allegedly used insider information in prediction markets during military operations in Venezuela. Selig assured that the agency is actively pursuing enforcement in these areas, signaling serious repercussions for market misconduct.