Written by Amin Haqshanas, Staff Writer. Reviewed by Bryan O’Shea, Staff Editor.
Written by Amin Haqshanas, Staff Writer.
Reviewed by Bryan O’Shea, Staff Editor.
CFTC officials who questioned prediction markets were suspended: NYT
Latest NewsPublishedMay 24, 2026
Suspension of CFTC Officials Raises Concerns Over Crypto Regulation
A recent investigation found that senior officials at the Commodity Futures Trading Commission who questioned prediction market companies, including Polymarket, Crypto.com, and Gemini, were suspended and pushed out. These officials had raised concerns about the companies’ business practices, including alleged unfair treatment of small bettors and inadequate fraud protections. The suspensions have sparked concerns over the agency’s ability to regulate the crypto industry effectively.
The investigation revealed that then-acting CFTC chair Caroline Pham and her senior counsel intervened to help the companies, despite the concerns raised by career staff. By the end of 2025, several officials who had raised questions were placed on administrative leave and under internal investigation, with no explanation for their actions. This has led to a chilling effect on the agency’s workforce, with many feeling that they should not “cause trouble” for the industries they are supposed to regulate.
Crypto Enforcement Pullback
The CFTC has significantly pulled back on crypto enforcement, dropping at least five investigations and reducing the number of enforcement actions from over 80 to just two. This pullback has raised concerns over the agency’s ability to protect consumers and regulate the industry. The current chair, Michael Selig, has previously represented crypto firms as a corporate lawyer, which has sparked concerns over potential conflicts of interest.
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Related: US Senate Banking Committee votes to advance CLARITY Act
CFTC pulls back on crypto enforcement
The report noted that the CFTC has significantly pulled back on crypto enforcement. The agency dropped at least five crypto investigations and went from filing more than 80 crypto enforcement actions under Biden to just two under Trump. Both of the recent cases targeted individual operators, not major firms.
Pham left the agency to join MoonPay, a crypto firm partnered with Polymarket. Her senior counsel, Brigitte Weyls, became general counsel at Gemini Titan, the same company whose application she helped approve, the NYT claimed. Current chair Michael Selig, the agency’s sole commissioner, previously represented crypto firms 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 firm co-founded by Eric Trump.
“President Trump only acts in the best interests of the American public,” Davis Ingle, a White House spokesman, told the outlet. “There are no conflicts of interest.”
Cointelegraph reached out to Polymarket, Crypto.com and Gemini for comment, but had not received a response by publication.
Relateed: CFTC no-action letter eases event contract reporting rules
CFTC sues states over prediction markets
As Cointelegraph reported, the CFTC has filed lawsuits against over their 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 nominate four commissioners to the CFTC, warning the agency is ill-equipped to handle its growing responsibilities with only one member in place.
Magazine: Guide to the top and emerging global crypto hubs — Mid-2026
Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.
- CFTC
- Prediction Markets
- Predictions
- United States
- Regulation
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