A New York Times investigation says senior Commodity Futures Trading Commission officials who raised compliance concerns about prediction market firms were later suspended, investigated and pushed out. The questions touched Polymarket, Crypto.com and a Gemini affiliate. According to the report, career staff had flagged consumer treatment, fraud controls and whether one affiliate had completed a required regulatory review.
Staff objections were followed by leave and internal pressure
The report said then-acting CFTC chair Caroline Pham and senior counsel Brigitte Weyls later helped the companies move ahead. By late 2025, two officials who had raised concerns were placed on administrative leave. Three other staff members connected to crypto enforcement were reportedly given the same treatment. The account adds to questions about how internal dissent was handled as the agency’s approach shifted.
Questions grow over the CFTC’s reduced crypto enforcement
The New York Times said the CFTC pulled back from crypto enforcement under the current administration. It reported that the agency dropped at least five crypto probes and brought only two crypto enforcement cases, both targeting individual operators rather than companies. The article also described a message that staff believed was circulating inside the agency: “Don’t cause trouble.” The White House rejected conflict claims. Spokesman Davis Ingle told the Times, “There are no conflicts of interest.”
Prediction market oversight is still being fought on several fronts
The wider rule dispute remains unsettled. Earlier coverage said the CFTC granted no-action relief for fully collateralized event contracts listed on regulated exchanges, covering some swap data reporting and recordkeeping duties for designated contract markets, clearing firms and market participants. In March, the agency also opened a broader rulemaking process seeking public comment on event contracts, public interest limits, cost-benefit questions and possible future rules.
At the same time, prediction market platforms are still facing legal pressure at the state level. Reports said the CFTC challenged actions in Arizona, Connecticut, Illinois, New York and Wisconsin. Reuters also reported that the CFTC sued New York on April 24, accusing the state of intruding on federal authority after New York sued Coinbase Financial Markets and Gemini Titan over prediction market products.
Polymarket’s US path has added another layer of pressure
Polymarket’s talks with the CFTC have sharpened attention on the issue. Earlier reporting said the platform has been in active discussions with the agency to lift a four-year US ban tied to a 2022 enforcement action and a $1.4 million settlement. Those talks were said to focus on contract design, KYC and reporting. The same coverage said Polymarket bought QCX LLC, a CFTC-registered exchange, for about $112 million in 2025. If approved, that deal could give the company a regulated route back into the US market.
Pressure is also building in Congress. The House Agriculture Committee last week urged President Trump to fill the CFTC’s four vacant commissioner seats, arguing that a one-member commission cannot keep up with expanding duties tied to crypto and prediction markets. Separately, the Senate Banking Committee advanced the CLARITY Act by a 15-9 vote, a bill that would divide digital asset oversight between the SEC and CFTC.