Back To The Future: CFTC Emphasizes Existing Regulatory Standards For New Al Technologies

Introduction

Advancements in artificial intelligence (AI) continue to reshape the financial services industry, with the growing popularity of generative Al (GenAl) tools prompting increased attention from US regulators. At the end of 2024, the US Commodity Futures Trading Commission (CFTC) issued a staff advisory discussing how the agency believes the larger universe of Al fits within existing regulatory frameworks (CFTC Al Advisory). This article examines key points from the CFTC Al Advisory and compares them to other recent CFTC actions and statements.

Key CFTC Discussions of AI Prior to the Staff Advisory

CFTC Request for Comment

In January 2024, the CFTC issued a request for comment on the use of Al in CFTC-regulated markets (AI RFC). This initiative sought feedback on several critical issues, including whether Al could impede the enforcement of anti-fraud and market manipulation regulations, how entities are modifying governance structures