CFTC watchdog warns of capacity limits if crypto oversight expands amid staff cuts

The inspector general for the U.S. Commodity Futures Trading Commission (CFTC) has identified digital asset regulation as a key risk for fiscal year 2026, warning that expanding the agency's supervisory authority amid staff reductions could strain its capabilities. According to Decrypt, the number of CFTC employees fell 21.5% from 708 in 2024 to 556 in 2025. The inspector general's office noted that the current derivatives-focused framework is ill-equipped to handle decentralized spot markets and that the agency requires additional personnel, technology, and data infrastructure.