CFTC Chair Michael Selig told House Agriculture Committee lawmakers on Thursday that the agency is leaning on AI and automation as it absorbs more work around crypto markets and event contracts.

What happened

The hearing came as Congress weighs broader crypto market structure legislation and as the CFTC argues it has exclusive jurisdiction over regulated prediction markets. In his written testimony, Selig said the agency is taking a "leading role" on digital assets, has joined an SEC interpretation to clarify which crypto assets are commodities or securities, and is working on guidance covering tokenized collateral, payment stablecoins, and software developers.

CoinDesk, which covered the hearing, reported that Selig said "tools such as AI" and Microsoft's Copilot are being folded into surveillance and workflow systems. The report also said Selig acknowledged "numerous investigations" tied to prediction markets.

Why it matters

The notable point is not that the CFTC suddenly solved its resource problem. Both Selig's testimony and statements from House Agriculture members made clear the agency is being asked to oversee larger, faster, and more technologically complex markets. Ranking Member Angie Craig said the CFTC needs more staff, funding, and tools as digital-asset and event-contract markets expand.

The conservative read is that AI is becoming part of the regulator's operating stack, not a substitute for rules or headcount. But if Congress gives the CFTC a larger crypto mandate, the agency appears to be preparing for that expansion with more automation, tighter surveillance, and a stronger enforcement focus.