The US CFTC is stepping up AI monitoring of predictive market transactions, simultaneously strengthening cross-border law enforcement and on-chain analytics.

BlockBeats reported on May 15th that the U.S. Commodity Futures Trading Commission (CFTC) is using artificial intelligence tools to monitor prediction market trading activities to identify insider trading and market manipulation risks on platforms such as Polymarket. CFTC Chairman Michael Selig stated that regulators are using AI to perform pattern recognition on massive amounts of trading data to screen for anomalous transactions, locate potentially violating accounts, and assist in deciding whether to launch investigations or issue subpoenas. He emphasized that AI has become an important tool for regulatory work in the context of rapidly growing data volumes. The report states that although platforms like Polymarket are mostly located outside the U.S. and are not licensed in the U.S., the CFTC stated that it will take enforcement action against cross-border transactions involving U.S. users and will exercise extraterritorial jurisdiction if necessary. The agency is also combining on-chain analytics tools (such as Chainalysis) and market anomaly monitoring systems to jointly monitor the crypto market and traditional financial markets. Recently, prediction market platforms such as Polymarket and Kalshi have strengthened their scrutiny measures against insider trading and market manipulation and introduced third-party on-chain data analytics services to comply with regulatory requirements. The CFTC stated that it has received numerous reports of unusual transactions and is currently processing "hundreds to thousands" of potential leads, with the scope of enforcement potentially expanding further.