Explosive NYT Report Alleges Regulatory Interference at CFTC for Trump-Linked Crypto Firms

A recent investigative report by The New York Times has unveiled serious allegations against high-ranking officials within the U.S. Commodity Futures Trading Commission (CFTC). The report claims these officials actively facilitated the regulatory approval process for cryptocurrency firms with close ties to the Trump family, simultaneously sidelining, investigating, and even forcing out internal staff who dared to raise objections.

At the epicenter of this controversy are three key players: Polymarket, Crypto.com, and Gemini’s subsidiary, Gemini Titan. These companies reportedly share commercial or investment relationships with the Trump family and required critical CFTC approvals for their burgeoning prediction market operations.

According to testimonies from over 30 current and former officials, career staff had voiced substantial concerns. These included Polymarket’s perceived lack of adequate anti-fraud mechanisms, Crypto.com’s insufficient protections for small-scale bettors, and Gemini Titan’s failure to complete full regulatory review procedures before seeking approval.

The New York Times specifically highlights allegations that Caroline Pham, then Acting Chair, and Brigitte Weyls, Senior Legal Counsel, intervened in multiple review processes, seemingly to expedite regulatory approvals for the implicated firms.

Dissenting Voices Silenced: Officials Faced Suspension and Internal Probes

The investigation paints a troubling picture of internal retaliation. By late 2025, at least two officials who had expressed doubts about these cases were reportedly placed on administrative leave, barred from office access, and subjected to internal investigations. Three other senior officials involved in cryptocurrency enforcement cases faced similar fates. Many of the affected officials claimed the agency never provided clear reasons for these probes.

Current and former employees told The New York Times that these actions sent an unambiguous message throughout the agency: do not impede the rapid development of the cryptocurrency and prediction market industries.

The report further details alleged irregularities surrounding Brigitte Weyls’ conduct concerning Gemini Titan. She is accused of proactively distributing draft approval documents to staff, recommending approval, even before internal reviews were fully completed. This alleged deviation from standard procedure, where evaluations are typically finalized by junior review teams before being submitted for committee decisions, raises significant questions.

Gemini Titan ultimately received swift approval. Just months later, Brigitte Weyls joined Gemini Titan as its General Counsel, a move that has ignited widespread concerns over potential conflicts of interest.

Unpacking the Trump Family’s Crypto Connections

The New York Times investigation meticulously details several direct links connecting the implicated firms to the Trump family:

• Polymarket reportedly received investment from 1789 Capital, a venture capital firm with ties to Donald Trump Jr.
• Crypto.com partnered with Trump Media & Technology Group to launch “Truth Predict,” a prediction market service hosted on the Truth Social platform.
• Cameron and Tyler Winklevoss, the co-founders of Gemini, are also noted supporters of American Bitcoin, a company co-founded by Eric Trump.

Following the report’s publication, White House spokesperson Davis Ingle issued a statement asserting that all decisions made by the Trump administration prioritized the public interest and were free from conflicts of interest.

As of the report, Polymarket, Crypto.com, and Gemini have not provided comprehensive responses to the specific allegations. However, Polymarket has previously affirmed the robustness of its market security mechanisms, while Crypto.com has emphasized its full compliance with federal regulations.

Alarming Decline in CFTC Crypto Enforcement Under Scrutiny

The New York Times report highlights a stark and concerning reduction in the CFTC’s enforcement efforts against the cryptocurrency industry during a potential second Trump term. The report states that during the Biden administration, the CFTC initiated over 80 enforcement actions related to digital assets. In sharp contrast, a hypothetical second Trump term has seen only 2 cases to date, both targeting individual operators rather than large crypto enterprises.

Compounding these concerns, the CFTC allegedly dropped at least five cryptocurrency investigation cases, including a major exchange investigation that was already in its advanced stages.

CFTC Chairman Michael Selig has also become a focal point of public attention. With no new commissioners nominated by Trump, Selig remains the sole official commissioner, effectively granting him near-unilateral power over the agency’s regulatory and enforcement direction.

This escalating controversy has begun to reverberate through the U.S. Congress, impacting discussions on cryptocurrency legislation. Some Democratic lawmakers are now arguing that Congress should refrain from hastily advancing major cryptocurrency market reform proposals, such as the “CLARITY Act,” until the internal disputes and ethical questions within the CFTC are thoroughly addressed and resolved.