Report Says CFTC Officials Were Punished After Raising Crypto Compliance Concerns

A New York Times investigation says Trump appointees at the Commodity Futures Trading Commission intervened after career staff raised concerns about Polymarket, Crypto.com, and a Gemini affiliate, and that officials who challenged those firms were placed on administrative leave or subjected to internal investigations. The report says the concerns involved fraud protections at Polymarket, treatment of small bettors at Crypto.com, and whether Gemini’s affiliate completed required regulatory review. It adds that the CFTC withdrew at least five crypto investigations during Trump’s second term and publicly announced only two digital asset enforcement cases. The Times also reports that the agency is suing multiple states over attempts to restrict prediction markets, including Minnesota after it enacted a ban set to take effect on August 1.

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