NYT Says CFTC Clashed Internally Over Reviews of Trump-Linked Crypto Prediction Market Firms
Summary
- The New York Times reported that the CFTC faced internal conflict during regulatory reviews of crypto prediction market companies including Polymarket, Crypto.com, and Gemini Titan.
- According to the report, some CFTC staff raised concerns about Polymarket's fraud-prevention systems, investor-protection issues at Crypto.com, and deficiencies in the review process for Gemini Titan, while the agency's leadership moved ahead with approvals.
- Some employees who raised related issues were subjected to internal investigations or removed from their duties, while the White House denied allegations of a conflict of interest involving President Trump.
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The U.S. Commodity Futures Trading Commission faced internal conflict during its regulatory review of crypto prediction market companies tied to the Trump family, according to a report.
The Block reported on May 24 that The New York Times, citing current and former CFTC officials and internal documents, said the agency had faced pressure and internal disagreements over regulatory approval procedures for certain companies over the past year.
The companies at the center of the dispute were Polymarket, Crypto.com and Gemini Titan. They needed CFTC approval to expand their prediction market businesses, the report said.
The Times reported that Polymarket received investment from 1789 Capital, a venture capital firm involving Donald Trump Jr. Crypto.com was pursuing a prediction market platform partnership with Trump Media & Technology Group. It also said the Winklevoss twins, Gemini's co-founders, are backing American Bitcoin, a Bitcoin company co-founded by Eric Trump.
Some CFTC staff raised concerns at the time about Polymarket's fraud-prevention systems, investor-protection issues at Crypto.com and deficiencies in the review process for Gemini Titan. The agency's leadership, however, moved ahead with the approval process, according to the report.
The Times also said some employees who raised those issues were subjected to internal investigations or removed from their duties. It did not disclose specific reasons.
The White House denied the allegations. White House spokesman Davis Ingle told the Times that President Donald Trump "has always acted in the interest of the American people and there is no conflict of interest."
