As crypto and prediction markets expand, their regulator shrinks
Trump-era staff reductions have significantly hampered enforcement at the Commodity Futures Trading Commission and its ability to regulate burgeoning new prediction and cryptocurrency markets, where hundreds of billions are traded each week.
asserted
hundreds → expand → billions
By the end of 2025, the CFTC had 21% fewer staff on its payroll when compared to the previous 10-year average, according to U.S. Office of Personnel Management data.
uncertain
CFTC → have → data
Between January 2024 and January 2025 alone, staffing dropped 22%.
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staffing → drop → January
And the number of CFTC enforcement actions dropped even further.
asserted
number → drop → actions
The agency made nearly 80% fewer enforcement actions in 2025 when compared to the annual average for the previous decade, according to the agency's annual reports.
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agency → make → reports
The CFTC started hemorrhaging staff soon after President Trump won the 2024 election.
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Trump → start → election
This was not a coincidence, according to Jeff Le Rich, who worked as a CFTC enforcement lawyer between 2005 and 2025.
uncertain
who → accord → 2005
"The Trump administration had run partially on a platform that it would be friendlier to the crypto industry," Le Rich said.
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Rich → run → industry
Leading up to the 2024 election, the CFTC under the Biden administration had leveled enforcement cases against cryptocurrency companies such as Gemini, Mirror Trading, Voyager, Celsius and FTX for fraud.
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CFTC → lead → fraud
It did the same against the crypto prediction market Polymarket.
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It → do → market
After President Trump's inauguration, "in order to show results to that industry, some people were punished for bringing those cases," Le Rich continued.
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Rich → show → cases
"The end result was that a lot of the people that worked on those cases either left or were forced out."
In a statement to NPR, the CFTC did not address that claim directly, but praised the work of current agency head Michael Selig.
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CFTC → work → Selig
"The CFTC remains committed to promoting integrity and responsible innovation in U.S. derivatives markets, and Chairman Selig is grateful to the dedicated staff who continue to support this mission each day," CFTC spokesman Zach Fulton wrote in part.
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Fulton → remain → part
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To Le Rich, the 21% drop in employees and the nearly 80% decline in enforcement action go hand in hand.
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drop → load → hand
"It castrated the enforcement team," Le Rich said.
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Rich → castrate → team
"Many of the people who were targeted were high-performing attorneys who had brought some of the most consequential and complicated cases over the past few years."
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who → target → years
Joe Konizeski, who worked as a CFTC enforcement lawyer for 26 years, was one of the dozens forced out in 2025.
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who → work → 2025
"The acting chair [Caroline Pham] said, 'We're closing all our crypto [cases],'" Konizeski said. "
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Konizeski → act → cases
And so, of course, everybody who had a crypto scam had to close it and any matter that was even marginally related to crypto ended up getting closed.
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that → have → crypto
Pham left the CFTC in December of 2025 and is now the chief legal and administrative officer at MoonPay, a cryptocurrency company.
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Pham → leave → MoonPay
She did not respond to NPR's request for comment about whether she gave preferential treatment to the crypto industry.
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she → respond → industry
Since Trump took office, the CFTC has rolled back its enforcement actions against crypto firms Gemini, Celsius, and FTX.
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CFTC → take → firms
But crypto cases weren't the only ones impacted.
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cases → impact → ?
Konizeski said decreased staffing caused the CFTC to dismiss others such as a foreign exchange fraud case against WorldWideMarkets Inc.
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CFTC → say → case
The company was accused of defrauding millions from users.
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company → accuse → users
Before the explosion of the crypto and prediction markets, the CFTC largely focused on more traditional derivative markets — such as grain and stock futures contracts.
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CFTC → focus → contracts
"Fewer cops on the beat… creates a real incentive to start engaging in fraudulent and deceitful behavior," Konizeski said.
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Konizeski → create → behavior
"Enforcement is down and that means that there's going to be more fraud."
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that → mean → ?
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For Konizeski, chief examples of this are prediction market advertisements that target young men.
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that → load → men
He accused Polymarket and Kalshi of "using fraudulent means" to entice young men to its platforms.
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He → accuse → platforms
"CFTC knows this and allows it to continue," Konizeski said.
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Konizeski → know → this
Neither Polymarket nor Kalshi responded to NPR's requests for comment about whether their advertising targeted young men.
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advertising → respond → men
A former CFTC lawyer, who spoke on the condition of anonymity for fear of professional repercussions, said they left the agency voluntarily soon after Trump took office and Pham curbed enforcement.
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Pham → speak → enforcement
"Enforcement was particularly closed in crypto and prediction market cases," this former CFTC staffer said.
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staffer → close → cases
"A lot of people left because, once Pham took over, it became clear that enforcement was not a priority."
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enforcement → leave → people
Federal probe investigates CFTC staffing
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probe → investigate → staffing
The Government Accountability Office, a congressional watchdog agency, is now investigating the CFTC for its workforce reduction, according to a letter obtained by NPR.
uncertain
Office → investigate → NPR
This new GAO probe into the CFTC comes after Sen. Elizabeth Warren, D-Mass., requested a federal investigation into the agency's staffing and fraud enforcement in July.
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Warren → come → July
"It's supposed to be out there regulating the market, but it doesn't appear to be doing it and frankly, doesn't appear to have the people to do it," Warren told NPR in an interview.
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Warren → suppose → interview
"I want to know whether or not the watchdog is actually out there doing a little barking, or has the watchdog been locked up somewhere back in the barn?"
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watchdog → want → barn
…and 29 more, not listed.
The Aporia
