Senior Commodity Futures Trading Commission officials who raised concerns about forecasting companies were suspended, investigated and ultimately removed from the agency.
According to a New York Times investigation. published On Sunday, officials raised concerns about Polymarket, Crypto.com and affiliate Gemini, each of which had alleged business ties to the Trump family. Professional staff were concerned that Crypto.com was not treating diminutive players fairly, that Polymarket did not have adequate fraud protections, and that the Gemini affiliate had not undergone the required regulatory review to operate.
Despite these concerns, CFTC acting chair Caroline Pham and her senior adviser intervened to support the companies get what they wanted, sources told the NYT. By the end of 2025, the two officials who raised the questions were placed on administrative leave and placed under internal investigation. Three others who enforced cryptocurrency regulations suffered the same fate. No one was told what he did wrong.
“However, current and former agency employees said in interviews that commission staff conveyed a clear message: Don’t cause trouble for these industries,” the report said.
Related: U.S. Senate Banking Committee votes to approve CLARITY Act
CFTC withdraws from crypto enforcement
The report noted that the CFTC has significantly stepped back from crypto enforcement. The agency dropped at least five cryptocurrency investigations and went from filing more than 80 crypto enforcement actions under Biden to just two under Trump. Both recent cases involved individual operators rather than immense companies.
Pham left the agency to join MoonPay, a crypto company that works with Polymarket. Her senior legal adviser, Brigitte Weyls, has been named general counsel at Gemini Titan – the same company whose application she helped approve, according to the NYT. Current chairman Michael Selig, the agency’s sole commissioner, previously represented crypto companies as a corporate lawyer.
Crypto.com is a business partner of Trump Media. Polymarket received investment from Donald Trump Jr.-backed venture capital firm 1789 Capital. Gemini’s founders are financial backers of American Bitcoin Corp, a crypto company co-founded by Eric Trump.
“President Trump is acting solely in the best interests of the American people,” White House spokesman Davis Ingle told the agency. “There is no conflict of interest.”
Cointelegraph reached out to Polymarket, Crypto.com and Gemini for comment but did not receive a response via publication.
Related: The CFTC No Action Letter facilitates event contract reporting rules
CFTC Sues States Over Prediction Markets
As Cointelegraph reports, the CFTC has filed lawsuits in connection with the legal proceedings against prediction market platforms, launching action against regulators in Wisconsin, Minnesota, New York, Arizona, Connecticut and Illinois.
Source: Fairplaygov
Last week, the House Agriculture Committee urged Trump to appoint four commissioners to the CFTC, warning that the agency was not prepared to handle increasing responsibilities with just one member in office.
Warehouse: Guide to Top and Emerging Global Cryptocurrency Hubs – Mid 2026
