CFTC sidelined staff over concerns about Trump-linked crypto

An investigation found career officials at the Commodity Futures Trading Commission were sidelined and placed under internal investigation after they raised regulatory concerns about three firms with ties to President Trump’s family: Polymarket, Crypto.com and Gemini Titan. Agency acting leadership intervened to advance approvals for prediction-market projects while staff who objected were removed from their duties.

Current and former CFTC employees told investigators that enforcement lawyers and market-examination staff flagged specific problems: whether Polymarket had adequate fraud protections, whether Crypto.com was treating small bettors fairly, and whether Gemini Titan had completed required reviews before opening. In each case, the acting chair, Caroline Pham, and her senior counsel, Brigitte Weyls, stepped in, according to the investigation. By late December, several career staff who raised issues were placed on leave, barred from the office and put under internal probe; at least three other enforcement officials faced similar actions without detailed explanation.

The three companies under review have direct business links to members of the Trump family. Polymarket received investment from 1789 Capital, a venture firm partly owned by Donald Trump Jr., who also serves as an unpaid adviser. Crypto.com reached an exclusive agreement with Trump Media & Technology Group to run a prediction product on the Truth Social platform. Gemini Titan is affiliated with the Winklevoss twins, who back American Bitcoin, a company co-founded by Eric Trump.

After leaving the chair’s office in December, Pham joined MoonPay, a crypto firm that has a partnership with Polymarket. Weyls began working for Gemini Titan in March as general counsel. Agency staff described instances where standard review procedures were altered. In one episode, employees examining Gemini Titan’s application say Weyls sent a draft memo recommending approval-a task normally produced by staff for commissioners-and the application was approved quickly.

The report also documents a decline in the agency’s enforcement activity on digital assets. Since the start of the current administration, the CFTC announced two cases involving digital assets, both against individuals, compared with more than 80 such cases during the prior administration and more than two dozen during the earlier Trump term. The commission has filed a single case related to prediction markets, and it dropped at least five other crypto investigations, including a late-stage probe of a major exchange. In spring 2025 three senior enforcement officials, including the division’s chief counsel, deputy director and chief trial attorney, were placed under internal investigation for broadly described reasons tied to “the handling of certain enforcement matters.”

The agency’s leadership structure leaves the chair with unusually broad authority. Michael Selig, confirmed as chair in December, is the only confirmed commissioner; four seats remain vacant. That configuration gives the chair the ability to file lawsuits and issue rules without majority commission oversight. Leaders of the House Agriculture Committee have urged the White House to nominate candidates to restore a full five-member panel.

Responses to the investigation differed. White House spokesman Davis Ingle issued a statement: “President Trump only acts in the best interests of the American public. There are no conflicts of interest.” Polymarket said it maintains strong safeguards. Crypto.com stated it complies with federal regulations. Gemini did not respond to requests for comment. Pham and Weyls did not respond to requests for comment.

Calls for congressional scrutiny followed the reporting. Senator Richard Blumenthal wrote on social media that the CFTC has become a “craven tool of prediction markets & shady crypto firms” and urged lawmakers to examine the agency’s actions. Amanda Fischer, financial policy director at Better Markets, described the reporting as “bombshell” and said it should shape debate over legislation that would expand the CFTC’s authority over spot digital commodities. The Senate Banking Committee recently advanced a bill intended to broaden the agency’s oversight of digital-asset markets.