US senator slams CFTC for lax crypto oversight, alleges pro-Trump bias

U.S. Senator Elizabeth Warren of Massachusetts has sent a letter to Commodity Futures Trading Commission (CFTC) Chairman Michael Selig, criticizing the agency's poor oversight of prediction markets and cryptocurrency firms and demanding the submission of related records. Warren argued that the CFTC is being swayed by the companies it regulates and that the agency's capabilities have weakened since the Trump administration took office. According to data cited by Warren, the value of major prediction markets like Kalshi and Polymarket grew to approximately $60 billion as of early 2026, while the CFTC's staffing to oversee them was reduced by about 25%. Enforcement actions also decreased from 58 in fiscal year 2024 to 11 since President Trump's inauguration. The letter alleges that the CFTC made favorable decisions or dropped investigations into companies linked to the president's family and supporters, such as Donald Trump Jr.'s investment firm and Trump Media. Warren criticized the current CFTC as unprepared to handle expanded regulatory authority, particularly as Congress considers a bill to transfer crypto regulatory powers to the agency.