- A New York Times investigation claims CFTC staff who challenged crypto-linked prediction market firms were sidelined or investigated internally.
- Agency officials allegedly raised concerns about fraud protections, consumer safeguards and regulatory approvals tied to Polymarket, Crypto.com and Gemini Titan.
- The report also highlighted a steep drop in crypto enforcement activity at the CFTC during Trump’s second administration.
A New York Times investigation has alleged that senior officials at the Commodity Futures Trading Commission (CFTC) were sidelined after raising objections to crypto and prediction market firms connected to President Donald Trump’s business circle. The report said staff members who questioned Polymarket, Crypto.com and Gemini Titan were suspended, investigated or pushed out as the regulator reduced its crypto enforcement activity.
The investigation drew on agency documents and interviews with more than 30 current and former officials and company representatives. According to the report, career staff expressed concerns that Polymarket did not have adequate fraud protections, Crypto.com failed to treat smaller bettors fairly and Gemini Titan had not completed the required regulatory review process before operating.
Former acting chair Caroline Pham and senior counsel Brigitte Weyls were accused of intervening on behalf of the firms despite those concerns. In one case highlighted by the report, Weyls allegedly sent staff a draft memo recommending approval of Gemini Titan’s application while agency employees were still reviewing the submission. The application was later approved.
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Questions Over Enforcement Culture Intensify
The report stated that by Christmas, two officials who had questioned the firms had been placed on leave and prevented from returning to office while under investigation. Three other officials involved in crypto enforcement actions reportedly faced similar treatment, with employees saying the atmosphere inside the agency discouraged scrutiny of the sector.
The CFTC’s crypto enforcement activity has also reportedly declined sharply. The agency has filed only two digital asset enforcement cases during Trump’s second administration, compared with more than 80 during the Biden administration. At least five other crypto investigations were also reportedly dropped.
White House spokesperson Davis Ingle denied any conflicts, stating that Trump “only acts in the best interests of the American public.”
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