Warren Warns Weakened CFTC Risks Crypto Oversight Gaps

Senator Elizabeth Warren has challenged the Commodity Futures Trading Commission's readiness as Congress weighs broader crypto oversight. She warned that staffing cuts and reduced enforcement could strain the agency. Her letter to Chair Michael Selig described the situation as a "recipe for disaster."

Warren sent the letter on Friday as lawmakers advanced legislation expanding CFTC authority over crypto and prediction markets. She argued the agency lacks the capacity to manage wider responsibilities under current conditions.

She wrote that a smaller workforce and fewer enforcement actions weaken oversight. Warren cited reports that staff levels have fallen by about 25%.

Warren also pointed to a decline in enforcement since President Donald Trump took office. She said the trend raises concerns about the agency's ability to police complex crypto firms.

In her letter, Warren stated, "A CFTC with fewer staff members, reduced enforcement activity, and expanded responsibilities is a recipe for disaster." She asked Selig to explain how the agency would handle expanded duties.

Warren further questioned internal decisions affecting oversight priorities. She requested records on staff reassignments and communications with industry participants.

She also asked for documents covering contacts between the CFTC and crypto firms regarding the Clarity Act. The request included communications with prediction market platforms.

Warren referenced the agency's recent handling of cases involving Gemini. She highlighted the CFTC's decision to support vacating a 2022 judgment.