As crypto and prediction markets expand, the CFTC shrinks : NPR

Key Points:

• The Commodity Futures Trading Commission (CFTC) experienced a 21% staff reduction by the end of 2025 compared to the previous decade's average, resulting in an almost 80% drop in enforcement actions, particularly affecting cryptocurrency and prediction market regulation.
• Staffing declines began after President Trump's 2024 election, coinciding with a shift toward a more crypto-friendly stance, leading to the closure of many crypto-related enforcement cases and the departure or forced exit of key enforcement attorneys.
• The Government Accountability Office (GAO) has launched an investigation into the CFTC's workforce reductions following a request by Senator Elizabeth Warren, who expressed concerns about the agency's ability to regulate effectively amid these cuts.
• Current CFTC Chair Michael Selig, a former crypto industry lawyer, has advocated for reduced enforcement and increased rulemaking in crypto and prediction markets but faces challenges due to limited staffing and resources.
• Despite growing workloads, including a surge in approved prediction markets, the CFTC is moving forward with creating crypto regulations independently after Congress failed to pass major legislation, while continuing efforts to recruit staff to address its regulatory responsibilities.