A New York Times investigation alleges the U.S. Commodity Futures Trading Commission (CFTC) purged staff members who questioned crypto firms tied to former President Donald Trump.

A New York Times investigation says the Commodity Futures Trading Commission (CFTC) sidelined senior officials who raised concerns about large prediction-market and crypto-linked platforms, fueling questions about how the agency is handling oversight of the sector. What the NYT reported Career CFTC staff who flagged issues involving Polymarket, Crypto.com and a Gemini affiliate were suspended, put on administrative leave or otherwise forced out, according to the report. Two officials who questioned the activity were said to be on leave by late 2025, and three other employees linked to crypto enforcement faced similar measures. The officials had raised concerns around consumer protections, fraud controls and whether a Gemini affiliate had completed required regulatory review. The NYT reports that then-acting CFTC Chair Caroline Pham and senior counsel Brigitte Weyls later helped the firms move forward. Staff inside the agency reportedly took the message as: "Don't cause trouble." The White House denied conflicts of interest, with spokesman Davis Ingle telling the NYT: "There are no conflicts of interest." Enforcement pullback The NYT says the CFTC has pulled back from crypto enforcement under the current administration, dropping at least five crypto probes and bringing only two crypto enforcement cases, both targeting individual operators. Separately, Reuters reported the CFTC sued New York on April 24, arguing the state overstepped after New York sued Coinbase Financial Markets and Gemini Titan over prediction-market products. The CFTC has also challenged state actions in Arizona, Connecticut, Illinois, New York and Wisconsin. Regulatory changes and ongoing rulemaking The CFTC recently issued no-action relief for fully collateralized event contracts traded on regulated exchanges, easing certain swap-data reporting and recordkeeping requirements for designated contract markets, clearing firms and market participants. In March, the agency opened a broader rulemaking on prediction markets, requesting public comment on event contracts, public-interest limits, cost-benefit analysis and potential future rules. Industry positioning and talks with regulators Polymarket is in discussions with the CFTC over lifting a four-year U.S. ban tied to a 2022 enforcement action and a $1.4 million settlement. Talks focus on contract design, KYC and reporting requirements. In 2025, Polymarket acquired QCX LLC, a CFTC-registered exchange, for about $112 million. The deal could provide a path to a regulated U.S. offering if approved. Politics and the broader backdrop On the staffing front, the House Agriculture Committee recently urged President Trump to fill four vacant CFTC commissioner seats, warning that a single-member commission cannot keep up with expanding crypto and prediction-market responsibilities. On Capitol Hill, the Senate Banking Committee advanced the CLARITY Act by a 15-9 vote. The bill would split digital-asset oversight between the SEC and the CFTC, a change that could materially reshape U.S. crypto regulation. Why it matters The NYT account depicts mounting internal tension at the CFTC as prediction markets and crypto-linked products face increasing scrutiny, alongside growing state-federal clashes. The agency's ongoing rulemaking, headline litigation and congressional action will shape whether the CFTC ramps up enforcement, cedes ground to states, or moves toward clearer rules for crypto-based event markets in the U.S.

Michael Burry warned this week that the U.S. could be drifting toward a "Snow Crash cyberpunk future" as the Securities and Exchange Commission (SEC) moves toward rules that would allow crypto platforms to trade tokenized versions of traditional stocks. In a May 19 post on his Substack, "Cassandra Unchained," later echoed on X, Burry invoked Neal Stephenson's 1992 novel "Snow Crash" to frame his concerns. In the book's dystopian vision, corporate power supplants government, people retreat into virtual worlds, and personal relationships wither amid digital identity and rigid economic sorting. Burry linked that premise to reporting that the SEC, under the Trump administration, was developing a broad innovation exemption that could let crypto firms list tokenized representations of U.S. stocks. "We may be headed fullon to a Snow Crash cyberpunk future with no longterm personal relationships and digital value embedded in all of us directly correlated to the value provided to a society that increasingly devalues humanity," he wrote. In a follow-up comment, he added: "Regulators have one job. Do not open scary doors." Bloomberg reported on May 18 that the SEC's approach would provide a lighter regulatory route for blockchain-based versions of public company shares. Under the proposal, crypto firms could potentially trade tokenized stock without the underlying company's direct consent and without the full scope of traditional oversight, opening the door to 24/7 trading on blockchain platforms. Critics have flagged risks tied to third-party issuance, settlement and operational vulnerabilities, price manipulation, and investor protection. The structure could also pull equities toward crypto-style market dynamics, including round-the-clock volatility. The SEC later put the initiative on hold. Reporting on May 22, 2026 confirmed the delay, with no official explanation provided, suggesting either internal caution or external pressure. Tokenization of real-world assets such as stocks, bonds, and real estate has attracted interest from major Wall Street players seeking faster settlement, fractional ownership, and broader global access. The Depository Trust and Clearing Corporation has explored related concepts. Burry has argued that combining equities with less-regulated crypto infrastructure blurs important lines. His critique extends beyond market plumbing. Through "Cassandra Unchained," Burry has written about what he sees as AI hype, venture capital concentration, and markets drifting away from fundamentals, citing one figure that 87% of venture capital flows went into AI during a recent reporting period. Media coverage of the "Snow Crash" post spread quickly, casting Burry as warning about the accelerating convergence of crypto and traditional finance (TradFi). Crypto supporters often dismiss his stance as reflexive pessimism, while backers point to his call ahead of the 2008 housing crisis as evidence of early pattern recognition. Burry has previously shown limited openness to understanding tokenization in other Substack posts, though his broader posture toward crypto speculation has been cautious for years. The SEC's next step on tokenized stocks is expected to shape how digital-asset platforms interface with equity markets governed by decades of investor-protection law.

CoinMarketCap reports that a New York Times investigation has put the U.S. Commodity Futures Trading Commission (CFTC) back under the spotlight, after several career officials who flagged compliance issues tied to prediction-market platforms were later suspended, investigated, or pushed out of their roles. According to the report, staff raised concerns about the operations of Polymarket, Crypto.com, and related entities, focusing on consumer protection safeguards, antifraud controls, and whether certain affiliates had completed required regulatory reviews. The New York Times said officials were later disciplined after raising these questions, and alleged that then-acting chair Caroline Pham and senior legal counsel Brigitte Weyls helped the companies continue operating. By the end of 2025, at least two officials who raised objections had been placed on administrative leave, and three additional staff members involved in crypto enforcement faced similar treatment, the report said. Internal sources described the message inside the agency as: "don't cause trouble." The investigation also pointed to a sharp contraction in crypto enforcement under the current administration. The report said the CFTC has withdrawn at least five crypto investigations and has brought only two crypto enforcement cases, both aimed at individual operators rather than major platforms or companies. The White House rejected claims of conflicts of interest. Spokesperson Davis Ingle told The New York Times there were no conflict-of-interest issues. Separately, the CFTC in March opened a broader rulemaking process seeking public comment on event contracts, including public-interest limits, cost-benefit analysis, and longer-term regulatory direction. At the state level, legal pressure continues. Reuters previously reported that on April 24, the CFTC sued the state of New York, arguing the state exceeded its authority by intruding on federal regulatory jurisdiction. New York has also sued Coinbase Financial Markets and Gemini Titan over prediction-market products. Lawmakers have also raised alarms about staffing constraints and leadership vacancies at the CFTC. Last week, the House Agriculture Committee urged President Trump to quickly fill the agency's four vacant commissioner seats, warning that a commission down to a single member is not equipped to manage expanding responsibilities in crypto and prediction markets. Polymarket, for its part, is still pursuing a compliance path back into the U.S. market. The company has been in discussions with the CFTC to lift a four-year U.S. ban stemming from a 2022 enforcement action. Polymarket previously paid a $1.4 million settlement related to that case, and current talks are reportedly centered on contract design, KYC, and reporting requirements. In 2025, Polymarket acquired QCX LLC, a CFTC-registered exchange, for about $112 million, a move seen as a meaningful step toward reentering the U.S. market under a compliant framework. On Capitol Hill, the Senate Banking Committee advanced the CLARITY Act by a 15-9 vote. The bill would shift and clarify regulatory responsibilities for digital assets between the SEC and the CFTC.

Republican lawmakers are stepping up efforts to pass the proposed ARMA Act, which would direct the United States to stockpile bitcoin equivalent to 5% of the total supply. The push comes as the party still holds control of both chambers of Congress and is seeking to get the bill signed into law.

BlockBeats reported on May 24 that CME FedWatch data shows a 32.1% probability the Federal Reserve keeps rates unchanged by December. The odds of cumulative hikes stand at 42.5% for 25 basis points, 20.6% for 50 basis points, 4.4% for 75 basis points, and 0.4% for 100 basis points.

Several officials at the U.S. Commodity Futures Trading Commission (CFTC) were suspended and later resigned after internal regulatory concerns were raised involving Polymarket, Crypto.com and Gemini-affiliated companies, according to reports. The same reports said CFTC Acting Chair Caroline Pham and senior advisers intervened in related approval processes. The CFTC is reported to have brought more than 80 cryptocurrency enforcement actions during the Biden administration, versus two during the Trump administration. Pham has since joined MoonPay. Her former adviser, Brigitte Weyls, has joined Gemini Titan. The White House said President Trump has no conflict of interest.

Several senior U.S. Commodity Futures Trading Commission (CFTC) officials who flagged compliance risks tied to prediction market platforms were later suspended, placed under internal review, and ultimately forced to resign, according to a report. The officials had raised concerns including Polymarket's allegedly inadequate anti-fraud safeguards, Crypto.com's purportedly unfair treatment of smaller bettors, and failures by Gemini-linked entities to complete required regulatory reviews. The same report said investigators believed the companies had business connections to the Trump family. Sources cited in the report said then-Acting CFTC Chair Caroline Pham and senior advisers intervened to help the related firms secure regulatory approvals. By the end of 2025, two officials who voiced concerns were administratively suspended and subjected to internal investigations; three additional officials overseeing crypto enforcement faced similar actions. None were told the specific reasons, the report said. The episode was described as sending an internal message at the CFTC: "don't cause trouble for the industry." The report also said the agency sharply reduced crypto enforcement during Trump's presidency: under Biden, the CFTC brought more than 80 crypto enforcement actions, while during Trump's term it initiated only two, both targeting individual operators rather than major companies. The report added that Pham later joined MoonPay, which partners with Polymarket, and her former senior adviser Brigitte Weyls became General Counsel at Gemini Titan. Current CFTC Chair Michael Selig previously served as corporate counsel for several crypto firms. (Cointelegraph)