The Minnesota Democrat said the CFTC\u2019s staff is down 20% from the end of fiscal 2024, but Selig claimed the agency is \u201crunning more efficiently and effectively than ever before,\u201d crediting the \u201cright-sizing of the government\u201d under President Donald Trump.<\/p>\n
\u201cIt\u2019s absolutely vital that we continue to monitor, surveil and police our markets. And we are doing just that,\u201d Selig continued. \u201cWe are utilizing new tools, from AI to automation and other surveillance systems that we\u2019re building out, and we take this responsibility very seriously.\u201d<\/p>\n
The CFTC, which is four commissioners shy<\/a> of a full body, has hired people from the private sector and continues to recruit through USAJobs.gov<\/a>, Selig said, adding that \u201cit\u2019s absolutely critical\u201d that the regulator has the right funding and resources to monitor the markets.<\/p>\n But despite the concerns of Craig and several other House Agriculture Democrats, Selig believes the CFTC\u2019s fiscal 2027 budget proposal<\/a>, which calls for 650 full-time positions, will leave the agency \u201cadequately staffed.\u201d He told Rep. Shontel Brown, D-Ohio, that reports of the regulator being under-resourced was \u201cfake news.\u201d<\/p>\n \u201cIt\u2019s really critical that we continue to bring on new software systems like AI tools and surveillance tools to make sure that we\u2019re better suited to police the markets, but we\u2019re running very effectively and efficiently,\u201d Selig said.\u00a0<\/p>\n The fiscal 2027 proposal calls for an $11 million boost in funding for the CFTC\u2019s Division of Data. Per the justification document, the DOD\u2019s role is to \u201cempower the CFTC to make data-driven decisions; harness data to develop and deploy sophisticated enterprise analytics and artificial intelligence (AI) capabilities; modernize and streamline its data analytics tools and technologies; improve data standardization and compliance; and promote a data-informed workforce to improve mission and operational performance.\u201d<\/p>\n Rep. April McClain Delaney, D-Md., asked Selig to expound on AI\u2019s role at the agency going forward, pressing for details on how the emerging technology is used and if it\u2019s being leveraged with \u201cappropriate human oversight.\u201d<\/p>\n The CFTC chair said the agency has access to various Microsoft 365 products that \u201cwill allow our staff to start incorporating AI into their workflows.\u201d Though the agency\u2019s recently updated AI inventory<\/a> lists just three use cases, Selig emphasized that \u201cexpanding the use of AI throughout the building\u201d is \u201ca key priority of ours.\u201d<\/p>\n \u201cThis is going to make them more productive, so that they can, of course, focus on their day-to-day tasks and also manage things using automation and software tools,\u201d Selig told McClain Delaney. \u201cThere are also software systems and tools that can allow us to pick things up faster, whether it\u2019s surveillance or otherwise using AI.\u201d<\/p>\n Other tech-related topics that came up during Thursday\u2019s hearing were the regulator\u2019s role in policing alleged<\/a> insider trading<\/a> scandals<\/a> on Kalshi and Polymarket<\/a>, and how the CFTC can maintain proper boundaries following a memorandum of understanding it reached last month<\/a> with the Securities and Exchange Commission.<\/p>\n On the prediction markets, Selig said that the CFTC is approaching the issue through a notice of proposed rulemaking<\/a> it issued last month, and that he \u201cwon\u2019t pre-judge the outcome of that process.\u201d The agency is receiving input from stakeholders across the country and will eventually put rules in place \u201cthat are going to address these concerns.\u201d<\/p>\n
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