The U.S. Commodity Futures Trading Commission (CFTC) has enhanced its efficiency in market surveillance and investigations through the integration of AI and automation, despite a 25% reduction in staff since 2025, according to Chair Mike Selig. The CFTC is actively investigating prediction markets to combat insider trading, fraud, and market manipulation, maintaining a strict zero-tolerance policy against illegal activities. In legislative developments, the Digital Asset Market Transparency Act, currently progressing in the Senate, seeks to designate the CFTC as the primary regulator for non-security cryptocurrency trading, including major assets like Bitcoin and Ethereum.