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Senior officials of the U.S. Commodity Futures Trading Commission (CFTC) who raised issues with virtual asset and prediction market companies were suspended en masse, investigated, and ultimately expelled from the agency.
Cryptocurrency specialized media Cointelegraph reported on May 24 (local time), citing an investigative report by the New York Times, that "government officials were subjected to retaliatory measures after raising concerns about Polymarket, Crypto.com, and Gemini affiliates, which are known to have business ties with the family of former U.S. President Donald Trump." Internal staff pointed out that Crypto.com did not treat small betting investors fairly, Polymarket lacked fraud prevention measures, and Gemini affiliates had not completed essential regulatory reviews. However, then-acting Chairperson Caroline Pham and her senior advisor intervened to approve the demands of these companies despite the staff's concerns. By the end of 2025, two senior officials who raised issues and three employees enforcing virtual asset-related laws were effectively ousted, receiving administrative leave and internal investigations without clear notification of reasons.
This incident sent a strong warning message within the agency not to raise issues with the related industry, and the intensity of enforcement against virtual assets sharply diminished. The commission halted at least five virtual asset investigations, and virtual asset enforcement actions, which numbered over 80 during the Joe Biden administration, plummeted to just two under the Trump administration. Even the two recent actions targeted only individual operators, not large corporations. The individuals who neutralized virtual asset company investigations later moved to related industries. Former acting Chairperson Pham moved to MoonPay, a partner company of Polymarket, and Senior Advisor Brigitte Weyls became the general counsel of Gemini Titan, which she helped approve. Current Chairman Michael Selig, who now leads the agency alone, also comes from a law firm that previously defended virtual asset companies.
The virtual asset companies that were pointed out have close conflicts of interest with the Trump family. Crypto.com is a business partner of Trump Media, and Polymarket received investment from 1789 Capital, a venture capital firm supported by Donald Trump Jr. Gemini's founders are financial backers of American Bitcoin Corporation, co-founded by Eric Trump. White House spokesperson Davis Ingle countered, "President Trump acts solely in the interest of the American public, and there are no conflicts of interest." Cointelegraph requested clarification from Polymarket, Crypto.com, and Gemini but did not receive a response.
Meanwhile, regarding legal procedures for prediction market platforms, the commission is waging an all-out war by filing lawsuits against state government authorities, including Wisconsin, Minnesota, New York, Arizona, Connecticut, and Illinois, that seek to regulate virtual asset prediction markets. In response, the U.S. House Agriculture Committee warned that the commission is currently operating with only one commissioner and is insufficient to carry out its expanded responsibilities. The House Agriculture Committee strongly urged President Trump to promptly nominate four commissioners to the Commodity Futures Trading Commission.
*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*
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