- CFTC officials faced suspensions after questioning Trump-linked crypto firms operations.
- Crypto enforcement cases dropped significantly under Donald Trump’s current administration leadership.
- Trump-connected crypto companies maintained expanding influence across major regulatory developments.
Senior officials inside the Commodity Futures Trading Commission faced suspensions and internal investigations after raising concerns about crypto firms tied to Donald Trump’s business circle. According to a New York Times investigation, staff members at the regulator questioned operations involving Polymarket, Crypto.com, and a Gemini affiliate connected to prediction markets. Officials reportedly examined customer protections, fraud controls, and approval procedures linked to those platforms.
Career staff reportedly believed Crypto.com failed to protect smaller bettors properly. Meanwhile, officials questioned whether Polymarket maintained strong fraud prevention measures. Additionally, investigators claimed Gemini’s affiliate had not completed a required regulatory review process before operating.
However, the report stated that former acting CFTC chair Caroline Pham and senior counsel Brigitte Weyls later stepped in to help the companies receive approvals and favorable treatment. Consequently, officials who pushed for stricter oversight later faced administrative leave and internal probes.
The investigation revealed that at least five officials connected to crypto enforcement eventually lost influence inside the agency. None reportedly received explanations regarding the accusations made against them. Current and former employees told investigators that many workers inside the regulator understood the message clearly. Staff members reportedly believed pursuing politically connected crypto firms could create career risks.
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Crypto Enforcement Cases Collapse Under Trump Administration
The report also revealed a major decline in crypto enforcement actions under Donald Trump’s administration. According to the findings, the CFTC dropped at least five investigations tied to crypto companies. During Joe Biden’s presidency, the regulator launched more than 80 crypto-related enforcement actions. Since Trump returned to office, the agency has reportedly filed only two new crypto cases.
Several officials involved in the developments later accepted positions inside the crypto sector. Caroline Pham joined MoonPay, which partners with Polymarket. Meanwhile, Brigitte Weyls became general counsel at Gemini Titan following the approval controversy mentioned in the report.
The investigation also highlighted financial ties between the companies and Trump-linked businesses. Crypto.com currently works with Trump Media. Besides that, Polymarket received investment from a venture firm backed by Donald Trump Jr. Gemini founders also support American Bitcoin Corp, a crypto business co-founded by Eric Trump.
A White House spokesperson rejected conflict of interest claims, stating President Donald Trump continues acting in the best interests of the American public. Separately, lawmakers recently urged Donald Trump to appoint additional commissioners to the CFTC because the regulator currently operates with only one commissioner.
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