Nikolas Sargeant
TL;DR
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A New York Times investigation published Sunday found that CFTC career officials who raised concerns about companies with business ties to the Trump family, were pushed out of the agency.
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Some of these companies include Polymarket, Crypto.com, and a Gemini affiliate.
A new investigation by The New York Times alleges that senior officials at the U.S. Commodity Futures Trading Commission (CFTC) spent the past year helping clear regulatory obstacles for crypto and prediction market firms tied to the Trump family, while marginalizing career staff members who raised concerns.
The report, published Sunday by reporters Sharon LaFraniere and David Yaffe-Bellany, cites agency documents and interviews with more than 30 current and former employees, along with company executives.
At the center of the investigation are three firms seeking approval for prediction market-related operations: Polymarket, Crypto.com, and Gemini affiliate Gemini Titan. According to the report, all three companies had connections to President Donald Trump’s inner circle or business network.
Polymarket received funding from 1789 Capital, a venture capital firm partially owned by Donald Trump Jr., who also serves as an unpaid adviser to the company. Crypto.com partnered with Trump Media & Technology Group last October to launch “Truth Predict” on Truth Social, the president’s social media platform. Meanwhile, Gemini founders Cameron and Tyler Winklevoss support American Bitcoin, a crypto mining venture co-founded by Eric Trump.
Career officials at the CFTC reportedly raised concerns about the companies’ operations. Staff members questioned whether Crypto.com adequately protected retail traders, whether Polymarket had sufficient anti-fraud safeguards, and whether Gemini Titan had completed the necessary review process before launch.
Despite those objections, then-acting CFTC Chair Caroline Pham and senior counsel Brigitte Weyls allegedly intervened in favor of the companies, according to the investigation.
The report claims that by late December, several officials who challenged the approvals were placed on administrative leave, denied access to the office and subjected to internal investigations without clear explanations. Additional enforcement staff involved in crypto oversight allegedly faced similar treatment.
Current and former employees told the newspaper the moves created a chilling effect inside the agency, sending a message not to interfere with industries favored by leadership.
The investigation also highlights potential revolving-door concerns. Pham later left the agency to join crypto payments firm MoonPay, which has an exclusive partnership with Polymarket tied to prediction markets. Weyls, meanwhile, became general counsel at Gemini Titan in March after reportedly advocating for the approval of the company’s application while still at the agency.
One episode detailed in the report describes Weyl's sending agency employees a draft memo recommending approval for Gemini Titan while staff were still reviewing the filing. The move reportedly bypassed normal procedures, where career staff prepare recommendations for commissioners. The application was later approved.
Enforcement Activity Falls Sharply
The report also points to a steep decline in crypto-related enforcement activity under the current administration.
According to the NYT, the CFTC has announced only two digital asset-related enforcement actions during Trump’s second term, both involving individuals. That compares with more than 80 crypto-related cases brought during the Biden administration and more than two dozen during Trump’s first term.
In the prediction markets sector, the agency has pursued only one case involving a U.S. Special Forces soldier accused of using classified information to place bets on Polymarket related to Venezuelan President Nicolás Maduro.
The report further claims the CFTC abandoned at least five additional crypto investigations, including a probe involving a major exchange. Several senior enforcement officials were also reportedly placed under internal review in 2025 over unspecified concerns tied to “certain enforcement matters.”
Concerns Over Agency Structure
The investigation raises questions about the concentration of power within the agency. Current CFTC Chair Michael Selig, confirmed in December, is presently the commission’s only sitting commissioner because President Trump has yet to nominate replacements for the remaining four seats. As a result, Selig currently holds unilateral authority over rulemaking and enforcement decisions affecting industries connected to the president’s business interests.
Lawmakers on the House Agriculture Committee recently urged the White House to fill the vacant positions. Chairman Glenn “GT” Thompson and Ranking Member Angie Craig argued in a joint letter that a full five-member commission would provide stronger oversight, more balanced regulation, and broader representation of market stakeholders.
Selig previously worked as a partner at law firm Willkie Farr & Gallagher, where he represented crypto companies before later serving as chief counsel to the SEC’s Crypto Task Force.
The report also claims that Brian Quintenz, an earlier Trump nominee for the CFTC chairmanship, saw his nomination withdrawn after lobbying efforts by the Winklevoss twins, who were reportedly dissatisfied with his refusal to support Gemini’s complaints against agency enforcement staff.
The White House rejected suggestions of wrongdoing in response to the report.
“President Trump only acts in the best interests of the American public,” White House spokesman Davis Ingle told the NYT. “There are no conflicts of interest.”
Polymarket defended its compliance practices, saying it maintains strong safeguards. Crypto.com said it complies fully with federal regulations. Gemini did not respond to requests for comment. Pham and Weyls also declined to comment, according to the report.
The investigation triggered criticism from some lawmakers and policy advocates.
Sen. Richard Blumenthal accused the CFTC of becoming “a craven tool” for prediction market and crypto firms, alleging the agency ignored national security concerns while retaliating against employees attempting to enforce regulations.
Amanda Fischer, policy director at Better Markets and a former SEC chief of staff, described the findings as evidence of “systemic” corruption involving crypto and prediction market companies.
Fischer also argued the revelations should influence debate surrounding the CLARITY Act, proposed legislation that would significantly expand the CFTC’s authority over spot crypto markets.
The Senate Banking Committee voted 15-9 earlier this month to advance the bill, with bipartisan support. The House previously approved its own version last July.
