High-ranking Commodity Futures Trading Commission officials who expressed concerns about prediction market companies were suspended, investigated, and ultimately expelled from the commission.
A New York Times investigation published Sunday said officials were concerned about Polymarket, Crypto.com and Gemini affiliates, each of which allegedly has business ties to the Trump family. Career staff were concerned that Crypto.com was not treating small bettors fairly, that Polymarket lacked adequate fraud protection, and that Gemini affiliates had not completed the necessary regulatory reviews to operate.
Despite these concerns, then-acting CFTC Chair Caroline Pham and senior advisers stepped in to help the companies get what they wanted, sources told the Times. By the end of 2025, the two employees who raised the issue were placed on administrative leave and an internal investigation was conducted. Three other crypto law enforcers faced the same fate. No one told them what they had done wrong.
“However, current and former officials said in interviews that commission officials took away the clear message that these industries should not be harmed,” the report said.
Related: U.S. Senate Banking Committee votes to advance CLARITY Act
CFTC withdraws crypto enforcement
The report noted that the CFTC has significantly set back cryptocurrency enforcement. The agency has dropped at least five crypto investigations and filed more than 80 crypto enforcement cases under the Biden administration, compared to just two under the Trump administration. All of the recent incidents targeted individual businesses rather than major corporations.
Pham left the agency and joined Moonpay, a cryptocurrency company in partnership with Polymarket. Her senior advisor, Bridget Wiles, has become general counsel for Gemini Titan, the same company that helped approve her application, the NYT claimed. The agency’s current chairman, Michael Selig, is the agency’s sole director and previously represented crypto companies as a corporate lawyer.
Crypto.com is a business partner of Trump Media. Polymarket received investment from 1789 Capital, a venture capital firm backed by Donald Trump Jr. Gemini’s founders are financial backers of American Bitcoin Corporation, a cryptocurrency company co-founded by Eric Trump.
“President Trump will act only in the best interests of the American people,” White House press secretary Davis Engle said. “There is no conflict of interest.”
Cointelegraph reached out to Polymarket, Crypto.com, and Gemini for comment, but did not receive a response in time for publication.
Related: CFTC no-action letter relaxes reporting rules for event contracts
CFTC sues state over prediction markets
As reported by Cointelegraph, the CFTC has filed lawsuits over legal proceedings against prediction market platforms, filing lawsuits against regulators in Wisconsin, Minnesota, New York, Arizona, Connecticut, and Illinois.
Source: Fairplay Gob
Last week, the House Agriculture Committee urged President Trump to appoint four commissioners to the CFTC, warning that a single commissioner is ill-equipped to handle the increased responsibilities.
Magazine: Guide to Top and Emerging Global Cryptocurrency Hubs — Mid-2026
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