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April 25, 2024

The CFTC Must Carefully Consider the Benefits and Risks of AI in CFTC-Regulated Markets

WASHINGTON, D.C.— Cantrell Dumas, Director of Derivatives Policy, issued the following statement in connection with the filing of a comment letter to the Commodities Futures Trading Commission’s (CFTC) on the use of artificial intelligence (AI) in CFTC-regulated markets.

“We have entered a dangerous new era in which the use of articial intelligence in finance is exploding.  Financial firms across the spectrum are making huge investments in this technology.  AI certainly has the potential to improve how markets function, making them more efficient by quickly processing data to help make better decisions, analyzing information in real time, and identifying and combatting  market manipulation.

“However, AI also poses immense risks.  It can be used to facilitate fraud and circumvent technologies designed to defend firms against hackers. And it also will increase the risk of systemically destabilizing trading patterns that can trigger and intensify a market crisis.  This risk is especially grave to the extent many firms use the same or similar AI technologies in their trading strategies.  Additionally, AI’s complex decision-making process can make it hard for regulators like the CFTC to monitor and control the use of AI, as it’s often not clear where problematic behaviors, data sources, or biases come from.

“Effectively navigating these challenges is essential for responsibly leveraging AI’s potential. It is imperative that the CFTC’s regulatory frameworks evolve in step with these technological advancements to safeguard investors and our financial markets. To do this, the CFTC, industry experts, and policymakers must work together to improve rules, increase enforcement, and supply regulators with sufficient resources, all to ensure that the risks of AI don’t overwhelm its benefits.”

You can find our comment letter here.


Better Markets is a non-profit, non-partisan, and independent organization founded in the wake of the 2008 financial crisis to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. Better Markets works with allies—including many in finance—to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans’ jobs, savings, retirements and more. To learn more, visit

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