Catenaa, Wednesday, May 27, 2026- A New York Times investigation has alleged that senior officials inside the Commodity Futures Trading Commission sidelined career enforcement staff and accelerated approvals benefiting crypto and prediction market firms tied to President Donald Trump’s political and business network, deepening scrutiny over conflicts of interest inside the US derivatives regulator.
The report, based on interviews with more than 30 current and former officials, described internal disputes involving prediction market platform Polymarket, crypto exchange Crypto.com and Gemini Titan, a Gemini-linked prediction market business tied to Cameron and Tyler Winklevoss.
According to the investigation, several career officials raised concerns over fraud controls, customer protections and regulatory readiness before senior leadership allegedly intervened to move approvals forward.
Staff Removed
The New York Times reported that multiple enforcement officials who questioned crypto-related approvals were later placed on leave, removed from offices or subjected to internal investigations.
Current and former staff members reportedly interpreted the moves as a warning against challenging politically connected crypto firms.
The report alleged then-acting CFTC Chair Caroline Pham and senior counsel Brigitte Weyls intervened directly in matters involving prediction markets and crypto approvals.
Pham later joined crypto payments company MoonPay after leaving the agency. Weyls reportedly became general counsel for Gemini Titan earlier this year.
Prediction Market Expansion
The controversy centers heavily on prediction markets, one of the fastest-growing sectors in crypto and online derivatives trading.
Polymarket received backing from investment firm 1789 Capital, partially owned by Donald Trump Jr., while Crypto.com partnered with Trump Media & Technology Group to launch “Truth Predict” on Truth Social.
Gemini founders Cameron and Tyler Winklevoss also support American Bitcoin, a crypto venture linked to Eric Trump.
The report said regulators internally questioned whether some firms met required operational and investor protection standards before approvals moved ahead.
Enforcement Collapse
The investigation also highlighted a sharp drop in crypto enforcement activity under the current administration.
The CFTC reportedly pursued only two digital asset enforcement cases during Trump’s second term so far, compared with more than 80 during the Biden administration.
Several late-stage crypto investigations were allegedly abandoned, including a major probe involving a large exchange platform, according to the NYT report.
Critics argued the alleged weakening of enforcement coincides with expanding political and financial connections between crypto firms and Trump-linked businesses.
Political Fallout
Democratic lawmakers and financial watchdog groups reacted strongly following publication of the report.
Senator Richard Blumenthal accused the CFTC of becoming compromised by prediction market and crypto industry influence.
Former SEC official Amanda Fischer also called for lawmakers to reconsider the proposed CLARITY Act, legislation that would hand the CFTC expanded authority over digital commodity markets.
The White House denied wrongdoing and said President Trump acts solely in the public interest.
Polymarket, Crypto.com and Gemini separately defended their compliance standards and regulatory practices.
The Commodity Futures Trading Commission historically played a smaller role in crypto oversight compared with the Securities and Exchange Commission. That balance shifted after crypto derivatives and prediction markets expanded rapidly during the early 2020s.
Prediction markets became politically influential after the 2024 US presidential election, with platforms such as Polymarket and Kalshi attracting billions of dollars in trading volume tied to elections, wars and economic events. The sector increasingly blurred lines between derivatives trading, gambling and political forecasting.
At the same time, the crypto industry deepened political involvement through campaign donations, lobbying and partnerships with political media platforms. President Trump emerged as one of the most crypto-friendly US political figures after previously criticizing Bitcoin during his first administration.
The proposed CLARITY Act would dramatically expand the CFTC’s role over digital asset markets. Critics now argue allegations of political favoritism and weakened enforcement inside the agency could complicate congressional efforts to hand broader crypto authority to the regulator.
