CFTC uses AI to automate crypto registration after staff cuts

The CFTC is leveraging AI to automate crypto registration and market surveillance after staff cuts, aiming to boost efficiency and maintain oversight as its crypto regulatory role grows.

The U.S. Commodity Futures Trading Commission (CFTC) is adopting artificial intelligence (AI) and automation to process crypto registration applications and enhance market surveillance, following a staff reduction of over 20%. The agency is developing automated systems to streamline the registration process, which previously relied on manual document handling. AI tools will help identify incomplete or incorrect applications, accelerate feedback, and automatically reject clearly deficient submissions, reducing manual workload. CFTC staff are being trained to use Microsoft Copilot, and the agency is also building proprietary tools to review swap data and monitor markets. These initiatives aim to maintain regulatory efficiency and oversight as the CFTC’s responsibilities in the crypto sector grow, despite having fewer personnel. Additionally, the agency is asserting exclusive jurisdiction over prediction markets and has taken legal action to defend this position against state-level challenges.