CFTC Put 5 Senior Officials on Leave as 3 Trump-Linked Firms Won Prediction Market Help
Updated
Updated · The New York Times · May 24
CFTC Put 5 Senior Officials on Leave as 3 Trump-Linked Firms Won Prediction Market Help
1 articles · Updated · The New York Times · May 24
Five senior CFTC officials were put on leave, barred from the office and placed under internal investigation after questioning three firms tied to the Trump family’s business network.
Three companies—Crypto.com, Polymarket and a Gemini offshoot—were seeking agency approval to expand in prediction markets, despite staff concerns over bettor protections, fraud controls and incomplete review.
Caroline D. Pham, then the acting chair, and her senior counsel intervened to help the firms get what they wanted, according to people familiar with the matter.
By Christmas, two top officials who raised objections and three others involved in crypto enforcement had been sidelined, with none told what misconduct they had allegedly committed.
Interviews with more than 30 current and former staff members and company officials suggested the episode sent a broader message inside the regulator not to challenge politically connected prediction-market and crypto interests.
How can prediction markets ensure fairness when insider trading is rising and regulatory enforcement is shrinking?
Is the booming prediction market industry becoming too risky for average investors amid regulatory turmoil and documented fraud?
Crisis at the CFTC: Insider Trading, Trump Family Ties, and the Battle for Integrity in $34 Billion U.S. Prediction Markets
Overview
In May 2026, the CFTC faced a major crisis when several senior officials were suddenly placed on leave without explanation, creating uncertainty and fear within the agency. This move was widely seen as a warning to avoid challenging powerful industries, raising concerns about a chilling effect on regulatory enforcement. At the same time, CFTC Chairman Michael Selig strongly criticized new state laws targeting prediction markets, arguing they harm farmers who rely on these tools to manage risk. The removal of key staff further deepened existing instability at the CFTC, which was already struggling with staffing shortages and high turnover.