Senior Commodity Futures Trading Commission officials who raised concerns about futures markets firms were suspended, investigated and fired, according to a New York Times investigation.
Summary
- The NYT reported that CFTC officials expressed concerns about Polymarket, Crypto.com and its affiliate Gemini before the suspension.
- Crypto.news reported the CFTC’s easing of event contracts as legal battles for predictions escalated across the country.
- The CFTC sued New York after the state’s actions against the prediction markets Coinbase and Gemini.
The NYT reported that labor officials are questioning work related to Polymarket, Crypto.com and the Gemini company. Employees expressed concerns about consumer management, fraud control and whether one organization has completed the required regulatory review.
The report said then-CFTC chairwoman Caroline Pham and then-general counsel Brigitte Weyls later helped the firms move forward. The NYT said the two officials who raised the questions were placed on administrative leave in late 2025. Three other employees arrested for using crypto also faced similar action.
Crypto storage is under scrutiny
The NYT report said the CFTC has backed away from crypto use under the current administration. It said the agency dropped at least five crypto probes and filed only two crypto charges, both against individual operators.
The article also said that employees saw a clear message within the agency: “Don’t cause problems.” The White House has denied claims of conflict. Spokesman Davis Ingle told the NYT, “There is no conflict of interest.”
The rules of the prediction market are still being debated
Related reports of crypto.news reported that the CFTC is not offering an exemption for fully held event contracts that are listed on regulated exchanges. The assistance includes specific data reporting and record keeping activities for designated contract markets, clearing firms and market participants.
The CFTC also opened a broader regulatory process for futures markets in March. A Federal Register notice said the agency sought public comment on event contracts, public interest restrictions, cost-benefit issues and possible future rules.
Meanwhile, crypto.news reported that prediction market platforms are facing legal battles at the federal level as government officials support broader CFTC regulation. The report said the CFTC challenged the actions in Arizona, Connecticut, Illinois, New York and Wisconsin.
Reuters also reported that the CFTC sued New York on April 24. The agency suspected the situation of entering federal jurisdiction after New York sued Coinbase Financial Markets and Gemini Titan over prediction market products.
As crypto.news reported, Congress has also raised concerns about the CFTC’s small leadership bench. The House Agriculture Committee last week pressed President Trump to fill the agency’s four commissioner seats, saying a one-member commission could not keep up with its growing crypto and forecasting work.
Polymarket negotiations add pressure
Crypto.news reported that Polymarket had active discussions with the CFTC to remove the four-year US ban tied to the 2022 enforcement action and the $1.4 billion settlement. The report said the discussions focused on contract drafting, KYC and reporting.
The same filing says Polymarket will buy QCX LLC, a CFTC-registered exchange, for about $112 million in 2025. That agreement could help set the stage for a controlled US approach if officials approve the plan.
The dispute now comes as Congress weighs broader crypto regulations. Crypto.news reported that the Senate Banking Committee advanced the CLARITY Act by a vote of 15-9, a bill that would split oversight of digital assets between the SEC and the CFTC.
