The report also mentioned alleged interventions by former acting CFTC Chair Caroline Pham and senior counsel Brigitte Weyls in approval processes, as well as later industry roles taken by both officials. The White House and the companies involved denied wrongdoing.
CFTC Accused of Crypto Favoritism
A new investigation that was published by The New York Times raised serious concerns about the relationship between the Commodity Futures Trading Commission (CFTC), the cryptocurrency industry, and businesses connected to the Trump family.
According to the report, senior officials at the CFTC allegedly worked over the course of a year to help clear regulatory obstacles for several crypto and prediction market firms with ties to Donald Trump and his family, while sidelining or removing career staff members who questioned the process. The investigation focused on three major companies: Polymarket, Crypto.com, and Gemini through its affiliate Gemini Titan. Each company reportedly required approval or oversight from the CFTC to expand prediction market operations.
The report mentioned that Polymarket received investment backing from 1789 Capital, which is partly owned by Donald Trump Jr.. Crypto.com also has a partnership with Trump Media & Technology Group to launch prediction market products on Truth Social. Meanwhile, Gemini’s founders, Cameron Winklevoss and Tyler Winklevoss, reportedly support American Bitcoin, a crypto mining venture linked to Eric Trump.
According to current and former staff members, career officials inside the CFTC raised concerns about whether these companies met regulatory standards. Some employees reportedly believed Crypto.com was not adequately protecting retail users, while others questioned Polymarket’s fraud prevention systems and whether Gemini Titan completed the proper approval process.
The investigation alleges that then-acting CFTC Chair Caroline Pham and senior counsel Brigitte Weyls intervened directly in favor of the companies. In one example that was pointed out by the report, Weyls allegedly sent staff a draft memo recommending approval for Gemini Titan before internal reviews were even finalized, reversing the normal regulatory process where career staff prepare recommendations for commissioners.
Caroline Pham
Several employees who raised concerns were reportedly placed on leave, removed from the office, or subjected to internal investigations without being clearly informed of the reasons. Former and current employees told the paper that the atmosphere inside the agency created pressure not to challenge crypto-related firms or prediction market businesses.
The report also pointed to what critics described as a revolving door between regulators and the crypto industry. After leaving the CFTC, Pham joined MoonPay, which has its own partnership with Polymarket, while Weyls later became general counsel for Gemini Titan.
The findings triggered strong reactions online and from lawmakers. Richard Blumenthal accused the CFTC of becoming overly aligned with crypto and prediction market interests. Amanda Fischer of Better Markets argued that the allegations should influence debate surrounding the CLARITY Act, which is the proposed legislation that would expand the CFTC’s authority over digital asset markets.
The White House denied any wrongdoing, and officials insisted that President Trump acts in the public interest and that no conflicts of interest exist. The companies named in the report also defended their operations, with Polymarket and Crypto.com stating that they comply with regulations and maintain strong safeguards.
