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CFTC Will Use Artificial Intelligence to Police Crypto: CoinDesk

Chair Selig says automated oversight will enable the agency to keep pace with the crypto industry, even as staffing levels decline.
CFTC Will Use Artificial Intelligence to Police Crypto: CoinDesk
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In an exclusive interview with CoinDesk, CFTC Chair Michael Selig confirmed that his agency will use artificial intelligence review crypto registration applications and surveil crypto markets.

What's the Scoop?

  • Automated Regulation: Guided by Chair Selig, the Commodity Futures Trading Commission (CFTC) is increasing its adoption of automation, building artificial intelligence can systems to review crypto registration applications and monitor trading activity. These tools will be capable of flagging, filtering, and deprioritizing applications, potentially pushing incomplete or “non-compliant” submissions to the back of the line without human review.
  • Staffing Cuts: Staffing levels at the CFTC have been reduced by about one-quarter since the start of 2025. Despite the reduction in its workforce, Selig claims that the CFTC is doubling down on aggressive enforcement across crypto and prediction markets, warning participants that scrutiny is intensifying. "We understand what our responsibility is at the CFTC, and we will be taking action to police fraud, manipulation, insider trading in crypto markets," Selig said.

What's the Take?

Artificial intelligence could boost the CFTC’s productivity by speeding up previously manual processes and expanding enforcement actions against bad actors. It also introduces serious risks, as automated errors that result in flawed judgments can be amplified at scale.


Jack Inabinet

Written by Jack Inabinet

879 Articles View all      

Jack Inabinet is a Senior Analyst with a passion for exploring the bleeding edge of crypto and finance. Prior to joining Bankless, Jack worked as an analyst at HAL Real Estate where he conducted market research and financial analysis for commercial real estate development and acquisition activities in the Seattle region. He graduated from the University of Washington’s Michael G. Foster School of Business.

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