A New York Times investigation published May 24 found that five senior CFTC officials were suspended and pushed out after raising regulatory concerns about Polymarket, Crypto.com, and a Gemini affiliate – three prediction market firms with documented financial ties to the Trump family. None were told what they had done wrong.

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How Prediction Markets Tied to Trump's Circle Won CFTC Approval

Career staff at the CFTC had flagged specific problems with each firm. They believed Crypto.com was not treating small bettors fairly, that Polymarket lacked adequate fraud protections, and that Gemini Titan had not completed the required regulatory review before operating.

Despite those objections, then-acting CFTC chair Caroline Pham and her senior counsel Brigitte Weyls stepped in to help the firms get what they wanted. In one instance, Weyls sent staff a draft memo recommending Gemini Titan's approval while agency employees were still reviewing the submission.

All three firms had financial ties to the Trump family. Crypto.com is a business partner of Trump Media. Donald Trump Jr.'s venture firm 1789 Capital invested in Polymarket – and he later joined Polymarket's advisory board. Gemini's founders are financial backers of American Bitcoin Corp, a crypto firm co-founded by Eric Trump.

Five CFTC Officials Sidelined as Enforcement Actions Fell to Two

The Times drew on agency documents and interviews with more than 30 current and former officials. By end of 2025, two staffers who had raised questions about the three firms were placed on administrative leave and subjected to internal investigations. Three others who had worked on crypto enforcement cases faced the same treatment. None received an explanation.

The suspensions came as the CFTC pulled back sharply on crypto oversight. The agency dropped at least five crypto-related investigations under the Trump administration. Enforcement actions fell from more than 80 under Biden to just two under Trump – both targeting individual operators, not major firms.

Pham left the CFTC to join MoonPay, a crypto company that partners with Polymarket. Weyls became general counsel at Gemini Titan, the same company whose application she had helped approve. Current chair Michael Selig, now the agency's sole commissioner, previously represented crypto firms as a corporate lawyer.

What the CFTC's Retreat Means for Prediction Market Regulation

The NYT findings raise specific questions about the CFTC's independence when politically connected firms are under review. Current and former staffers told the Times the workforce got the message clearly: raising concerns about these industries carried consequences.

The career moves at the top of the agency add to that picture. When regulators move directly to the firms they oversaw, their earlier conduct comes under scrutiny. The absence of any explanation to the suspended officials makes that accountability hard to trace.

The White House rejected the conflict-of-interest framing. "President Trump only acts in the best interests of the American public," spokesperson Davis Ingle told the outlet. "There are no conflicts of interest."

CFTC's Next Front: Six State Lawsuits, One Commissioner, Four Empty Seats

The CFTC is currently suing six states – Arizona, Connecticut, Illinois, New York, Wisconsin, and Minnesota – that have moved to restrict prediction markets under state gambling or securities law. The agency argues federal jurisdiction over event contracts preempts state-level rules.

The lawsuits are moving forward with only one commissioner in place. Last week, the House Agriculture Committee urged Trump to nominate four additional commissioners, warning that the agency is not equipped to handle its growing workload with Selig as its sole member.

Whether Trump fills those seats and how courts rule on the six state cases will determine how much regulatory authority over prediction markets the CFTC can actually exercise.

The CFTC is suing six states over prediction markets. If you trade on Polymarket or similar platforms, Web Snack tracks what these rulings could mean for your trades.

P.S. This article is for informational purposes only and does not constitute investment advice. Always conduct your own research and make independent decisions.