CFTC chairman: AI will now screen U.S. crypto registration applications.

The CFTC's chairman has confirmed to CoinDesk that the agency is deploying AI to review incoming crypto registration applications — a notable shift in how a major U.S. financial regulator handles compliance intake.

Using AI at the screening stage could accelerate processing times and surface inconsistencies faster than manual review, but it also raises questions about transparency and how applicants can challenge an automated decision. The CFTC has not yet detailed which systems are in use or how human reviewers will interface with the AI's output.

For the crypto industry, the move signals that regulators are willing to modernise their tooling — potentially shortening the registration backlog that has frustrated firms seeking formal U.S. standing.