Protecting Trump's crypto businesses? The New York Times reveals internal purge at the CFTC, whistleblower officials suspended

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The New York Times Exposes Alleged Internal Regulatory Interference at the CFTC The New York Times recently published an investigative report alleging that senior officials at the U.S. Commodity Futures Trading Commission (CFTC) helped cryptocurrency companies closely tied to the Trump family bypass regulatory hurdles, while suspending, investigating, or even forcing out internal officials who raised objections. The report identifies Polymarket, Crypto.com, and Gemini's subsidiary Gemini Titan as the companies at the center of the controversy. All of these firms have business or investment ties to the Trump family and required CFTC approval for their prediction market operations. According to more than 30 current and former officials, some career staff had raised concerns about the companies involved, including Polymarket's lack of adequate anti-fraud mechanisms, Crypto.com's insufficient protections for small bettors, and Gemini Titan's failure to complete the full regulatory review process. The New York Times reports that then-Acting Chair Caroline Pham and Senior Legal Counsel Brigitte Weyls intervened in multiple review processes to help the companies secure regulatory approval. Officials Who Raised Concerns Suspended and Placed Under Internal Investigation The report notes that by late 2025, at least two officials who had raised concerns about the cases were placed on administrative leave, barred from entering the office, and subjected to internal investigations. Three other senior officials handling cryptocurrency enforcement cases faced the same situation. Several affected officials said the agency never clearly explained the reasons for the investigations. Some current and former employees told The New York Times that the incident sent a clear message internally: do not obstruct the development of the cryptocurrency and prediction market industries. The report also states that Brigitte Weyls proactively sent staff a draft document recommending approval of Gemini Titan before the internal review was complete. This was a clear departure from the previous process, in which frontline review teams would first complete their assessments before submitting them to the commission for decision. Gemini Titan was ultimately approved swiftly. Several months later, Brigitte Weyls joined Gemini Titan as Chief Legal Officer, raising external concerns about conflicts of interest. Trump Family's Ties to Crypto Companies Under Scrutiny The New York Times notes that there are multiple direct connections between these companies and the Trump family. Polymarket received investment from 1789 Capital, a venture capital firm involving Donald Trump Jr. Crypto.com partnered with Trump Media & Technology Group to launch a prediction market service called "Truth Predict" on the Truth Social platform. Meanwhile, Gemini founders Cameron and Tyler Winklevoss are also backers of American Bitcoin, a company co-founded by Eric Trump. Following the report's publication, White House spokesperson Davis Ingle stated that all decisions by the Trump administration prioritize the interests of the American public, and that there is no conflict of interest. So far, Polymarket, Crypto.com, and Gemini have not issued full responses to the report. However, Polymarket previously stated that the company has robust market safety mechanisms in place, while Crypto.com emphasized its full compliance with federal regulations. Notable Decline in CFTC Crypto Enforcement Raises Concerns The New York Times notes that during Trump's second term, the CFTC's enforcement against the cryptocurrency industry has notably weakened. The report states that during the Biden administration, the CFTC brought more than 80 enforcement actions in cases involving digital assets; in Trump's second term to date, there have been only 2 cases, both targeting individual operators rather than major crypto firms. In addition, the CFTC has dropped at least 5 cryptocurrency investigations, including one involving a major exchange that had reached an advanced stage. Current CFTC Chair Michael Selig is also under external scrutiny. Because Trump has yet to nominate new commissioners, the CFTC currently has only Michael Selig as a formal commissioner, giving him nearly sole authority to direct regulatory and enforcement priorities. The incident has also begun to influence U.S. congressional discussions on cryptocurrency legislation. Some Democratic lawmakers argue that, until the internal disputes at the CFTC are resolved, Congress should not rush to advance major cryptocurrency market reform proposals such as the CLARITY Act. (The above content is excerpted and reprinted with authorization from partner publication "Crypto City." Link to original article.)

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