TLDRCFTC Chairman Mike Selig told lawmakers that AI tools help the agency maintain oversight despite a reduced workforce.About 25% of the CFTC staff has left since 2025 following federal workforce cuts.Selig said Microsoft Copilot supports internal workflows and investigations across the agency.The enforcement division seeks three additional staff positions but remains below 2025 staffing levels.Lawmakers questioned whether the CFTC has enough resources to oversee crypto and prediction markets.The U.S. Commodity Futures Trading Commission is expanding oversight of crypto and prediction markets despite fewer staff. Chairman Mike Selig told lawmakers that AI tools help maintain enforcement capacity. He said the agency continues rulemaking and investigations while operating with reduced personnel.AI Tools Support Oversight as Workforce ShrinksSelig told the House Agriculture Committee that AI supports surveillance and investigations. He said Microsoft’s Copilot assists staff across internal workflows and case reviews. He added that the agency runs “more efficiently and effectively” despite staff reductions.About 25% of CFTC employees have left since 2025 under federal workforce cuts. Agency records show the enforcement division seeks three new hires next year. The request would raise staffing to 108, still 23% below the 140 positions in 2025.Committee Chairman Glenn “GT” Thompson addressed the expanding mandate over digital assets and prediction markets. He asked Selig to request more qualified staff if operational needs rise. Selig replied, “Absolutely,” and reiterated that enforcement remains a “top priority.”Representative Angie Craig questioned whether the workforce can meet current demands. She said the agency serves as the primary regulator of two fast-growing markets. Craig urged Congress to provide staff, funding, and statutory authority.The commission currently operates with only Selig as a member. Federal law calls for five commissioners, including two from the minority party. Lawmakers asked whether Selig would advance major rules alone.Selig said the agency cannot slow rulemaking for the public’s sake. He confirmed plans to proceed with regulatory actions as a single commissioner. The CFTC has started a preliminary rule process for U.S. prediction markets.Bitcoin and Ethereum Fall Under Expanding CFTC RoleThe Senate continues work on the Digital Asset Market Clarity Act. The bill would assign the CFTC central authority over non-securities crypto trading. That mandate would include bitcoin at $75,158.21 and Ethereum’s ether.Selig’s predecessor, Rostin Behnam, had argued for more staffing to oversee crypto. He said the agency lacked resources to police expanding prediction markets. Selig now leads the regulator during rapid growth in those markets.Platforms such as Polymarket and Kalshi have expanded from millions to billions in annual volumes. Selig said the CFTC claims legal jurisdiction over these prediction markets. He acknowledged “numerous investigations ongoing” but declined to share numbers.Selig said regulated platforms serve as the first line of defense. He described the CFTC as a second line against insider trading and fraud. He warned that violators will face “the full force of the law.”He said the agency regularly rejects contracts that fail review. He stated, “We’re actively reviewing what’s out there,” and emphasized a “zero tolerance” policy. The CFTC continues to assess hundreds of new binary event markets each day.The post CFTC Chair Mike Selig Says AI Offsets Crypto Staff Cuts appeared first on Blockonomi.