U.S. CFTC Chairman: Will Use AI to Assist in Reviewing U.S. Crypto Registration Applications

On April 28, U.S. Commodity Futures Trading Commission (CFTC) Chair Mike Selig announced that the agency—having cut more than one-fifth of its staff—is turning to artificial intelligence (AI) to offset the manpower shortage. The shift comes amid former President Trump’s push to reduce the federal workforce, with Selig noting AI and automation can help fill the staffing gap. As a leading U.S. regulator in the crypto space, the CFTC is advancing AI and related technology to review registration applications and support market surveillance. Selig pointed out the CFTC’s registration process still relies on manual document submissions, so “we’re building an automated system to make it far more efficient.” He added AI tools can review applications, flag issues for staff, streamline their work, speed up feedback, and reject obviously incomplete filings. “AI can spot blanks, insufficient descriptions, or clear errors in submissions—then either reject those applications or place them at the end of the queue,” he explained. Selig has led the derivatives regulator for four months, during which the agency has deepened oversight of emerging technologies including crypto and prediction markets. But his regulatory framework for prediction markets (involving firms like Kalshi, Polymarket, Crypto.com, Coinbase, and Gemini) has sparked controversy. Selig insists the CFTC is the sole relevant regulator for these companies, clashing with state governments that have challenged the firms over alleged violations of state gambling laws—particularly in sports betting. He has sued multiple states, most recently New York, to defend the agency’s “exclusive jurisdiction.”