A New York Times investigation published this week found that senior CFTC officials who raised concerns about Polymarket, Crypto.com, and a Gemini-linked prediction-market plan were suspended, investigated, pushed out, or simply excluded from relevant discussions — while agency leaders helped those firms secure favorable regulatory outcomes. The report lands as the CLARITY Act, which would hand the CFTC broad oversight of the spot crypto market, moves through Congress.
Behind the CFTC shake-up
The CFTC is already stretched thin. Payroll full-time equivalents are down 21.5% from previous levels. The agency's FY2027 budget request seeks $410 million and 650 FTEs. And as of May 25, the CFTC commissioners page lists only Michael S. Selig as chairman, leaving unusually concentrated authority at the top.
According to the NYT, staffers who flagged problems were met with retaliation. One senior official was placed on leave after questioning Polymarket's anti-fraud protections before the firm received approval. Other staff worried that Crypto.com was giving large trading companies an edge over smaller sports bettors without full disclosure — those staffers were cut out of discussions entirely.
Polymarket and the Trump connection
Polymarket's regulatory path ran through QCX/QC Clearing no-action relief after its earlier U.S. settlement. Separately, Donald Trump Jr. joined its advisory board amid an investment from 1789 Capital. The timing drew attention: Trump Media announced that Truth Social would offer prediction markets through an exclusive arrangement with Crypto.com Derivatives North America, a CFTC-registered exchange and clearinghouse.
Gemini also had a hand in the story. Gemini Titan received a CFTC Designated Contract Market license on Dec. 10, 2025. The NYT reports that a draft approval memo came from senior counsel Brigitte Weyls while staff review was still underway. Weyls later left the CFTC to join Gemini Titan as general counsel.
What the CLARITY Act would change
The CLARITY Act would shift a large part of spot-market crypto oversight to the CFTC, turning the agency into the likely federal watchdog for exchanges, intermediaries, surveillance rules, conflict controls, and customer-asset protections. If passed, it would force the CFTC to write rules, register new market participants, monitor trading, police conflicts, and build enforcement capacity around the spot crypto market.
The timing isn't great. An agency that's already shedding staff and that, according to the NYT, has sidelined its own compliance-minded employees would suddenly be asked to do far more. Lawmakers are expected to take up the CLARITY Act debate in the coming weeks. Whether the CFTC can handle the job — and whether the staff exodus changes the politics — is an open question.
