Report Says CFTC Officials Were Punished After Raising Crypto Compliance Concerns
According to a New York Times investigation, CFTC staff who questioned Polymarket, Crypto.com, and a Gemini affiliate were placed on leave or investigated as the agency reduced crypto enforcement and fought states over prediction markets.
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.
- Commodity Futures Trading Commission (CFTC): A U.S. regulator that oversees derivatives markets and can take enforcement action involving crypto-related products and some prediction market activity.
- Prediction markets: Platforms where users trade on the outcomes of future events, often through contracts tied to politics, sports, or economic developments.
- Crypto enforcement: Regulatory actions such as investigations, lawsuits, or penalties targeting companies or individuals in the digital asset sector.