CFTC enforcement cases drop 80% as crypto market explodes

A Government Accountability Office investigation into CFTC staffing begins in December, according to a letter obtained by NPR.

The hit

The regulator meant to police hundreds of billions in weekly crypto & prediction market trades is operating with far fewer “cops on the beat,” says former CFTC enforcement lawyer Joe Konizeski. The CFTC’s staff fell 21% below its 10-year average by the end of 2025, according to US Office of Personnel Management data, & its enforcement actions dropped nearly 80% over the same period, per the agency’s own annual reports.

Why it matters

Former CFTC enforcement lawyers say the cuts gutted the team that pursued crypto fraud cases against firms like FTX, Celsius & Gemini. Konizeski says lower staffing led the CFTC to dismiss a foreign exchange fraud case against WorldWideMarkets Inc. He also accused Polymarket & Kalshi of using “fraudulent means” to target young men in their ads, a claim both firms did not respond to. Konizeski says fewer enforcers means more incentive for fraud.

The record

Staff decline	21% below 10-year average by end of 2025 (US Office of Personnel Management)
Enforcement actions	down nearly 80% vs decade average in 2025 (CFTC annual reports)
Single-year staff drop	22% fall, January 2024 to January 2025 (US Office of Personnel Management)
Planned hires	roughly 100 new staff in mission-critical areas by end of 2026 (CFTC spokesman Zach Fulton)
Departure	ex-acting chair Caroline Pham left CFTC in December 2025, now chief legal & administrative officer at MoonPay

What happens next

Watch for the GAO’s findings & whether a future Congress pursues subpoenas of CFTC, crypto or prediction market executives.

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

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