WASHINGTON, June 5 - Senator Elizabeth Warren, the senior Democrat on the Senate Banking Committee, pressed Michael Selig, the chairman of the Commodity Futures Trading Commission (CFTC), over recent reporting that alleges outside interference and preferential treatment benefiting the crypto and prediction markets industries.
In a letter addressed to Selig - who took office in December and currently serves as the only sitting commissioner on the five-member bipartisan agency - Warren cited coverage published in The New York Times and other outlets. That reporting, she wrote, alleges that agency leadership stepped in to help companies backed by allies of President Donald Trump and punished agency employees who opposed such interventions.
The CFTC did not immediately reply to requests for comment on Friday.
Warren noted that the White House told The Times last month that President Trump faced no conflicts of interest related to these matters. Still, she pointed to a pattern she characterized as troubling, telling Selig in the letter that the combined elements raised serious concerns.
Crypto firms and operators of prediction markets have, according to the reports Warren referenced, seen a friendlier stance from the CFTC during the Trump administration. The agency has reportedly dropped certain enforcement actions involving those industries and has been working on regulatory changes with an expressed aim of enabling sector growth.
At the same time, Warren pointed to growing congressional scrutiny of prediction markets amid worries about insider trading. She also highlighted that CFTC staffing has fallen sharply since last year, reaching levels the agency has not seen since the 2008 financial crisis, and that enforcement activity at the CFTC has declined.
"Taken together, these are concerning signs of a CFTC beholden to political pressures and interests of the wealthy insiders, unbound by the rule of law and failing to protect investors and market integrity," Warren wrote.
Summary
Senator Warren formally asked the CFTC chairman to address media reports alleging leadership intervention to favor firms backed by presidential allies and retaliation against staff. She emphasized reduced headcount and enforcement at the agency, the apparent easing toward crypto and prediction market firms, and rising congressional concern over insider trading risks.
Key sectors affected: financial regulation, crypto industry, prediction markets.