Senior officials at the U.S. Commodity Futures Trading Commission (CFTC) were removed from their posts, investigated, and ultimately pushed out of the agency after expressing skepticism about the operations of prediction markets. According to an investigation published by The New York Times, these officials had raised concerns regarding Polymarket, Crypto.com, and a Gemini subsidiary, all of which have business ties to the Trump family. This is reported by Cointelegraph.com.
Career staff were concerned that Crypto.com was treating retail investors unfairly, that the Polymarket system lacked sufficient fraud protections, and that the Gemini subsidiary had not undergone necessary regulatory scrutiny. Despite this, it is alleged that then-acting CFTC Chair Caroline Pham and her advisors intervened to assist these firms.
By the end of 2025, two officials who raised questions and three other employees involved in crypto enforcement were placed on administrative leave and subjected to internal investigations. According to current and former employees, a clear message was sent to the agency's workforce: do not cause trouble for these sectors. As a result, the CFTC has significantly weakened its oversight of the crypto industry.
Reports indicate that the agency has halted at least five crypto investigations. While more than 80 crypto enforcement actions were taken during the Biden administration, this figure has dropped to just two under Trump. Notably, Caroline Pham left the agency to join MoonPay, a Polymarket partner, while her advisor began working at Gemini Titan, a company she helped approve.
Currently, Crypto.com is a business partner of Trump Media, and Polymarket has received investment from a venture capital firm backed by Donald Trump Jr. White House spokesperson Davis Ingle stated that there is no conflict of interest and that the president acts solely in the interest of the American people.
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