CFTC loses a quarter of its staff! Chairman Mike Selig calls on Congress, saying "AI will handle it," but is rebuffed by Democratic lawmakers

U.S. CFTC Chair Mike Selig admitted at a congressional hearing that the agency has lost about a quarter of its staff since 2025 (from 708 to 543 people), but claimed it is making up for the shortfall through AI and automation tools. However, as demand for regulation of cryptocurrencies and prediction markets surges, Democratic lawmakers blasted the agency for being “too thin on manpower,” calling on Congress to allocate more manpower and funding. Selig also confirmed that “multiple investigations” are underway in the prediction market space, with a “zero-tolerance” policy toward illegal activity.
(Background: CFTC Chair Selig takes a tough stance: prediction markets “only we can regulate,” jurisdiction lies with the federal government, and he has sued three states.)
(Additional context: U.S. CFTC Chair announces a “new blueprint for crypto regulation”: partnering with the SEC to launch Project Crypto, as DeFi and prediction markets will see clearer rules.)

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• A quarter of staff leaving, enforcement team still short by 23%
• “Multiple investigations ongoing” in prediction markets, insider trading concerns intensify
• Democrats blast: manpower too thin—“CFTC must be given more resources”
• One-member commission raises questions, Thompson writes to the White House to push for nominations

U.S. Commodity Futures Trading Commission (CFTC) Chair Mike Selig, speaking Thursday at a House Agriculture Committee hearing, candidly acknowledged that the agency is facing an unprecedented staffing shortage—about a quarter of its employees have left since 2025—but he assured Congress that AI tools will be the key to filling the gap.

In his remarks at the hearing, Selig said:

“AI and similar tools will be very helpful in monitoring and advancing investigations. We are integrating them into every workflow.”

He specifically mentioned that the CFTC has widely deployed Microsoft’s Copilot AI tools to assist with productivity. When asked about the drop in headcount, Selig claimed, “We are operating more efficiently.”

A quarter of staff leaving, enforcement team still short by 23%

According to agency records, the number of full-time employees at the CFTC has fallen from 708 at the end of fiscal year 2024 to about 543, a drop of more than 20%, directly resulting from the Trump administration’s major downsizing of federal agencies. Ironically, the CFTC is now being pushed to the front line of cryptocurrency and prediction market oversight—two of the fastest-growing and most volatile emerging markets.

The enforcement department’s predicament is even more pronounced: the budget for the coming fiscal year only calls for hiring 3 additional enforcement officers, bringing the total to 108, but that is still about 23% fewer than the 140-person staffing level in 2025. Glenn “GT” Thompson, chair of the Agriculture Committee, expressed concern: “We’re handing you a lot of work on digital assets and prediction markets,” and he asked Selig to commit that if they discover “the need for more qualified personnel,” he will turn to the committee for help. Selig responded, “Absolutely.”

“Multiple investigations ongoing” in prediction markets, insider trading concerns intensify

Selig confirmed at the hearing that the CFTC is conducting “multiple investigations” in the prediction market sector, but he refused to disclose the specific number of investigations or their focus areas. He emphasized that regulated platforms such as Polymarket and Kalshi are the “first line of defense” against insider trading, fraud, and market manipulation, while the CFTC serves as the second line.

“We routinely reject contracts,” Selig said. “We are actively reviewing everything in the market, and we have a zero-tolerance approach to illegal market activity. Anyone engaging in such conduct will face the full force of the law.”

But scandals in prediction markets have been piling up lately—some involving transactions related to U.S. military actions and government announcements, and a few anonymous traders raking in huge profits from correct bets. This has fueled strong allegations that government insiders are trading using an information advantage. Selig’s predecessor, Democratic former chair Rostin Behnam, has long warned that the CFTC simply does not have enough resources to oversee prediction markets expanding globally.

Democrats blast: manpower too thin—“CFTC must be given more resources”

Committee top Democrat Angie Craig was blunt in her criticism: “This agency’s manpower has been stretched too thin,” especially considering that the CFTC has become the main regulator for “two of the fastest-growing and most unstable markets.”

“We must provide the CFTC with enough employees, funding, and clear statutory authority to get the job done,” Craig emphasized.

One-member commission raises questions, Thompson writes to the White House to push for nominations

In addition to manpower issues, the CFTC’s organizational completeness is also facing serious scrutiny. Under the law, the commission should have five members (including two from the minority party), but currently only Selig remains serving alone. When asked whether a “one-member commission” can push forward major rulemaking, Selig said, “We can’t slow down the legislative pace for the American people.”

This means the CFTC will move forward with prediction market guardrail rules and cryptocurrency policies with only one vote. After the hearing, Thompson said he would team up with Craig to write to the White House to “urge them to quickly fill the commission vacancies,” ensuring that both parties have nominees.

At present, the Digital Asset Market Clarity Act currently being advanced in the Senate would grant the CFTC a core regulatory role over non-securities cryptoasset trading, covering major assets such as Bitcoin and Ethereum—further increasing the burden on an already understaffed agency.