Michael Selig Says CFTC Will Use AI To Filter Crypto Applications, Target Fraud And Insider Trading: Report

• Commodity Futures Trading Commission Chair Michael Selig told CoinDesk the agency is building artificial intelligence tools to review crypto filings and filter out weak applications.
• The regulator plans to increase enforcement against fraud, market manipulation, and insider trading across crypto and prediction markets.
• Selig said artificial intelligence is helping manage staffing cuts while supporting a rise in investigations.

Commodity Futures Trading Commission (CFTC) Chair Michael Selig reportedly said on Tuesday that the agency was developing artificial intelligence (AI) tools to review crypto registration filings and strengthen market oversight.

Selig told CoinDesk in an interview that the AI system would automatically flag incomplete applications, insufficient descriptions, or obvious errors, allowing weak filings to be rejected or moved to the back of the queue. He added that these tools would also highlight key information for staff, speeding up a process that was still largely manual. The CFTC was also training employees on Microsoft (MSFT) Copilot and building internal tools to analyze swap data and monitor trading activity.

MSFT’s stock was trading up 0.72% during afternoon trading hours. On Stocktwits, the retail sentiment around MSFT remained in the ‘bullish’ zone, while chatter levels around rose to ‘high’ from ‘normal’ from the past day. 

The CFTC Chair explained that the agency will step up enforcement against fraud, market manipulation, and insider trading across crypto markets. He also pointed to prediction markets, saying the agency will pursue participants suspected of abusing insider information.

The push builds on recent digital asset classification guidance issued by the Securities and Exchange Commission (SEC), aimed at giving market participants clearer regulatory boundaries.

AI Helps Offset Staffing Cuts

The push toward AI comes as the agency faced internal resource constraints while taking on a broader mandate. Earlier this month, Selig noted that artificial intelligence helped offset staffing reductions of more than 20%, as the CFTC navigated federal workforce cuts while overseeing the fast-growing crypto and prediction markets sectors. Despite fewer personnel, he noted that the agency has already launched “numerous investigations,” signaling a more active enforcement posture.

Speaking at the Bitcoin 2026 conference on Monday, Selig emphasized a more proactive and innovation-friendly regulatory approach.

He said the CFTC was focused on protecting software developers building on Bitcoin (BTC) and ensuring they are not unfairly targeted in the absence of clear rules. Selig added that the agency wanted to foster an environment in which developers could build in the United States while supporting responsible innovation.

Bitcoin’s price was trading at $76,002, down over 1% during the past day. On Stocktwits, retail sentiment around BTC remained in the ‘bullish’ zone, while chatter stayed at ‘normal’ levels over the past day.

Read also: Bitcoin Cross-Exchange Trading Volume Spikes 136% Ahead Of Fed Rate Cut Decision

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