Significant Changes at the CFTC
In a significant shift for the Commodity Futures Trading Commission (CFTC), the agency’s Chicago office, known for its rigorous enforcement of complex cases, has seen its legal team almost entirely dismantled. Once home to 20 attorneys dedicated to high-stakes enforcement, the office’s ranks have dwindled to just one after the last attorney resigned following reported cuts, as per a recent investigation by Barron’s.
Impact on Enforcement Capabilities
This drastic reduction comes at a time when the CFTC, under the Trump administration, has been tasked with overseeing the burgeoning cryptocurrency sector and rapidly evolving prediction markets, areas that have turned increasingly complex and contentious.
The Chicago office had a strong reputation, having played a pivotal role in obtaining multi-billion-dollar penalties from major players like FTX and Binance. However, sources indicate that the layoffs of attorneys—possibly targeted due to the office’s specialized knowledge—could leave the agency ill-prepared to manage these new regulatory responsibilities. One former attorney expressed dismay at the situation, suggesting that the lack of enforcement staff creates a vacuum for unethical activities in the crypto space.
Financial Recovery Decline
Caroline Pham, who previously served as the CFTC’s acting chair in 2025 and oversaw a 21% workforce reduction, is now associated with a crypto company known as MoonPay. The agency’s diminished enforcement capabilities are underscored by stark contrasts in financial recoveries: in fiscal year 2024, the CFTC successfully secured $17.1 billion for investors, a figure that dramatically plummeted by almost 100% to only $9.2 million in 2025.
Concerns Over Future Oversight
The reductions in the Chicago office’s capacity, coupled with the ongoing changes in agency focus, have cast doubt on the CFTC’s ability to conduct thorough investigations into potential insider trading within the array of prediction markets, many of which revolve around sports. As the CFTC’s new chair, Mike Selig, appeared before Senate confirmation hearings, he hesitated to endorse calls for more resources or personnel to fortify the agency amid the proposed expansions to its regulatory scope. This reluctance raised eyebrows among various senators who emphasized the need for proper funding and staffing as crucial for the agency’s mission to effectively govern these growing sectors.
Agency’s Response
The CFTC has yet to respond to inquiries regarding these ongoing developments and the implications for its future role in overseeing the dynamic landscape of cryptocurrencies and prediction markets.
