NYT Reveals CFTC Executives Faced Suspension After Raising Prediction Market Concerns
An investigative report by The New York Times revealed that high-ranking CFTC executives faced suspension and removal after voicing concerns regarding Polymarket, Crypto.com and Gemini.
High-ranking executives at the Commodity Futures Trading Commission who voiced concerns regarding prediction market platforms found themselves suspended, placed under investigation and ultimately forced out of their positions at the regulatory body.
A New York Times investigative report released on Sunday revealed that these officials had raised red flags concerning Polymarket, Crypto.com and an affiliate of Gemini, all of which allegedly maintain business connections to the Trump family. Staff members with long careers at the agency expressed worries that Crypto.com was engaging in unfair treatment of smaller bettors, that Polymarket had insufficient safeguards against fraudulent activity and that Gemini's affiliated entity had failed to complete the necessary regulatory review process before commencing operations.
In spite of these concerns being raised, Caroline Pham, who was serving as acting chair of the CFTC at the time, along with her senior legal counsel, stepped in to facilitate approval for what these companies were seeking, according to sources who spoke with the NYT. Before the end of 2025, a pair of officials who had voiced objections found themselves on administrative leave while being subjected to internal investigations. An additional three staff members who had been responsible for enforcing cryptocurrency regulations encountered the same treatment. Not one of them received information about the nature of their alleged misconduct.
But current and former agency staffers said in interviews that the commission's work force took away a clear message: Don't cause trouble for those industries.
CFTC pulls back on crypto enforcement
The investigative piece highlighted that the CFTC has substantially reduced its enforcement activities in the cryptocurrency sector. The regulatory agency abandoned no fewer than five ongoing crypto-related investigations and saw its enforcement actions plummet from more than 80 cases filed during the Biden administration to a mere two under the Trump presidency. The two recent enforcement actions that were pursued both focused on individual operators rather than targeting major corporate entities.
Pham departed from the regulatory agency to accept a position with MoonPay, a cryptocurrency company that maintains a partnership with Polymarket. Her senior legal counsel, Brigitte Weyls, assumed the role of general counsel at Gemini Titan, the identical company whose regulatory application she had assisted in securing approval for, according to claims made by the NYT. The current chair, Michael Selig, who serves as the agency's only commissioner, previously worked as a corporate attorney representing cryptocurrency firms.
Crypto.com maintains a business partnership with Trump Media. Polymarket secured investment funding from 1789 Capital, a venture capital firm backed by Donald Trump Jr. The founders of Gemini serve as financial supporters of American Bitcoin Corp, a cryptocurrency company co-founded by Eric Trump.
President Trump only acts in the best interests of the American public. There are no conflicts of interest.
Davis Ingle, White House spokesman
Cointelegraph contacted Polymarket, Crypto.com and Gemini requesting comment, but did not receive any responses prior to the time of publication.
CFTC sues states over prediction markets
As previously documented by Cointelegraph, the CFTC has initiated legal action against multiple states over their legal proceedings targeting prediction market platforms, filing lawsuits against state regulators in Wisconsin, Minnesota, New York, Arizona, Connecticut and Illinois.
During the previous week, the House Agriculture Committee issued an appeal to Trump to put forward nominations for four commissioners to serve at the CFTC, cautioning that the regulatory agency lacks adequate capacity to manage its expanding range of responsibilities with just a single member currently in position.