CFTC Enforcement Cutbacks Halt Crypto and Prediction Market Regulation Progress

The CFTC’s flagship Chicago enforcement office, pivotal in handling complex enforcement actions and securing major settlements, has been effectively eliminated after its last lawyer resigned. The reductions follow leadership under Acting Chair Caroline Pham, who oversaw a 21% staff cut last year and now chairs MoonPay, a crypto company. The CFTC has broadened its jurisdiction to include crypto and prediction markets amid a Trump administration seeking to expand its oversight. However, the staffing cuts have crippled enforcement capacity, with monetary relief securing by the CFTC plummeting from $17.1 billion in fiscal 2024 to $9.2 million in fiscal 2025—a drop exceeding 99.9%. Senate confirmation of new Chair Mike Selig in November did not include a commitment to additional resources for crypto and prediction markets regulation, despite bipartisan support for increased funding. Former CFTC enforcement lawyers warn the agency is ill-equipped to police the thousands of sports-focused prediction markets it now seeks to regulate.