Senior Commodity Futures Trading Commission officials who raised concerns about prediction market firms were suspended, investigated and pushed out, according to a New York Times investigation.
Summary
- NYT reported CFTC officials raised concerns about Polymarket, Crypto.com and a Gemini affiliate before suspensions.
- Crypto.news reported CFTC relief for event contracts as prediction market legal fights widened nationwide.
- The CFTC sued New York after state actions against Coinbase and Gemini prediction markets.
The NYT reported that career officials questioned activity tied to Polymarket, Crypto.com and a Gemini affiliate. Staff raised concerns over consumer treatment, fraud controls and whether one affiliate had finished a needed regulatory review.
The report said then-acting CFTC chair Caroline Pham and senior counsel Brigitte Weyls later helped the firms move forward. The NYT said two officials who raised questions were placed on administrative leave by late 2025. Three other staff members tied to crypto enforcement also faced the same action.
Crypto enforcement falls under scrutiny
The NYT report said the CFTC pulled back from crypto enforcement under the current administration. It said the agency dropped at least five crypto probes and filed only two crypto enforcement cases, both against individual operators.
The article also said staff saw a clear message inside the agency: “Don’t cause trouble.” The White House denied conflict claims. Spokesman Davis Ingle told the NYT, “There are no conflicts of interest.”
Prediction market rules remain contested
Related crypto.news coverage reported that the CFTC gave no-action relief for fully collateralized event contracts listed on regulated exchanges. The relief covered some swap data reporting and recordkeeping duties for designated contract markets, clearing firms and market participants.
The CFTC also opened a wider rule process for prediction markets in March. The Federal Register notice said the agency sought public comment on event contracts, public interest limits, cost-benefit issues and possible future rules.
Meanwhile, crypto.news reported that prediction market platforms face state-level legal fights even as federal officials support broader CFTC control. The report said the CFTC had challenged actions in Arizona, Connecticut, Illinois, New York and Wisconsin.
Reuters also reported that the CFTC sued New York on April 24. The agency accused the state of intruding on federal authority after New York sued Coinbase Financial Markets and Gemini Titan over prediction market products.
As crypto.news reported, Congress has also raised concern over the CFTC’s thin leadership bench. The House Agriculture Committee last week pressed President Trump to fill the agency’s four vacant commissioner seats, saying a one-member commission cannot keep pace with its expanding crypto and prediction market duties.
Polymarket talks add to pressure
Crypto.news reported that Polymarket has been in active talks with the CFTC to lift a four-year U.S. ban tied to a 2022 enforcement action and $1.4 million settlement. The report said the talks center on contract design, KYC and reporting.
The same coverage said Polymarket bought QCX LLC, a CFTC-registered exchange, for about $112 million in 2025. That deal could help the platform build a regulated U.S. path if officials approve the plan.
The dispute now comes as Congress weighs broader crypto rules. Crypto.news reported that the Senate Banking Committee advanced the CLARITY Act in a 15-9 vote, a bill that would split digital asset oversight between the SEC and CFTC.
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