A new investigation published by the New York Times has revealed a troubling pattern of favoritism inside the Commodity Futures Trading Commission (CFTC). According to the report, senior officials at the agency gave preferential treatment to several crypto firms with ties to the Trump family. Career staff raised concerns about fraud protections, consumer safeguards, and approval processes, but their warnings were repeatedly ignored by those at the top.
The report focuses on three crypto firms: Polymarket, Crypto.com, and Gemini Titan, which is a Gemini affiliate. All three have connections to the Trump family through investments and business partnerships. Donald Trump Jr. joined Polymarket’s advisory board after his investment firm, 1789 Capital, backed the company. Crypto.com partnered with Trump Media & Technology Group to launch “Truth Predict” through the Truth Social platform.
The investigation says that senior CFTC officials, including then-acting Chair Caroline Pham and senior counsel Brigitte Weyls, overrode concerns raised by career staff. Pham and Weyls allegedly stepped into multiple reviews and helped remove regulatory hurdles for these companies. Staff members who raised concerns were pushed aside, and several enforcement officials faced internal investigations or were removed after challenging these decisions.
The CFTC favoritism allegations could derail bipartisan crypto legislation at a critical time
The controversy has sparked a fresh debate about political influence, crypto oversight, and possible conflicts of interest inside federal regulators. Critics argue that what allegedly happened at the CFTC could hurt bipartisan support for future digital asset legislation.
The Senate is currently debating the CLARITY Act, a major crypto market structure proposal, and this controversy has raised serious concerns about whether the CFTC can effectively regulate the industry. The report also draws attention to Justin Sun, the founder of Tron, who was a major backer of World Liberty Financial, the crypto firm co-founded by the Trump family.
Sun later sued World Liberty, accusing it of extortion and claiming the firm pressured him to invest in its stablecoin. World Liberty countersued, alleging defamation. This is not the only area where Trump’s relationships with foreign actors have drawn scrutiny, as U.S. officials privately communicating with Tehran has also raised questions about how the administration handles sensitive foreign dealings.
Separately, a Reuters report found that Iran’s largest crypto exchange, Nobitex, has processed at least $2.3 billion through Tron and BNB Chain. These are blockchain networks created by backers of the Trump family’s World Liberty Financial. The same report found that Iran’s Central Bank used Tron to purchase over $500 million in Tether, a stablecoin issued by Tether, raising concerns about the potential for illicit financial activity flowing through these networks.
Following the investigation, critics have called on Congress and the Inspector General to look into the CFTC’s conduct and its internal oversight failures. Senator Richard Blumenthal urged lawmakers to move carefully on crypto legislation until stronger regulatory protections are in place. The allegations have put pressure on the agency to explain how these decisions were made and whether proper processes were followed.
This comes at a time when the administration has also been making headlines for installing a new app on every government phone that greets federal employees with “greatest president ever,” adding to broader concerns about political influence within federal institutions. The report has raised broader questions about whether the CFTC has been prioritizing the interests of politically connected firms over the interests of ordinary consumers and investors.
Critics say the lack of transparency inside the agency is a serious problem, especially at a time when the crypto industry is pushing hard for clearer and more defined rules. Whether the CFTC takes meaningful steps to address these concerns will likely determine how much trust the public and lawmakers are willing to place in it going forward.
Published: May 25, 2026 09:45 am