CFTC Chair Requests Budget Increase, Defends Enforcement Record

CFTC Chair Selig defended the agency's enforcement record and budget request amid mounting congressional concern over insider trading in oil, equity, and prediction markets.

In testimony before the House Agriculture Committee, Mr. Selig said the agency's headcount has fallen more than 20 percent at the end of fiscal 2024. Mr. Selig said investments in automation and AI have improved efficiency but argued that additional funding remains critical. The CFTC requested $410 million for fiscal 2027, a 12 percent increase, and plans to expand to 650 employees as it takes on a larger role in digital asset oversight.

On enforcement, Mr. Selig asserted the CFTC maintains a zero-tolerance policy on fraud, manipulation, and insider trading, and described a two-tier oversight model in which exchanges serve as the first line of defense under the Commodity Exchange Act, with the CFTC acting as the second. Mr. Selig said the agency is managing a large volume of active investigations across its markets.

Mr. Selig also (i) stressed the importance of keeping SEC and CFTC mandates distinct while reducing duplicative regulation - particularly as digital assets increasingly blur traditional regulatory boundaries; (ii) supported the CLARITY Act, which would give the CFTC jurisdiction over digital commodity spot markets and warning that delay in passing the legislation leaves investors at risk, and (iii) cautioned against applying round-the-clock trading uniformly across asset classes, expressing concerns from agricultural producers about overnight risk management obligations.

Mr. Selig is currently the agency's sole commissioner, with four seats on the typically five-member commission vacant. Mr. Selig said halting rulemaking was not an option given the need to maintain investor and consumer protections.