CFTC Staffing Falls 24% as Insider Risks Rise

The Commodity Futures Trading Commission has reduced its headcount by roughly 24% since President Trump returned to office, falling to 535 employees in February after layoffs, buyouts and early retirements. The agency reported its smallest workforce in 15 years as trading in crypto, oil futures and prediction markets has expanded.

Enforcement ranks have been pared sharply. Chairman Michael Selig requested funding to support 108 enforcement workers, down from 140 filled positions in 2025. Agency data show the CFTC’s Chicago office, which previously had about 20 enforcement lawyers, no longer has any enforcement attorneys on staff.

The staffing reductions began under Caroline Pham, who was nominated to the commission during the prior administration and later served as acting chair. Selig, who was appointed under the current administration, defended the staffing levels at a congressional hearing. He testified the agency is filling vacancies and relying on technology and artificial intelligence tools, including Microsoft Copilot, to review public comments, draft memos and speed application processing. He told lawmakers, “There are no gaps in our ability to fulfill our mission.”

Lawmakers questioned whether the CFTC needs more funding, more staff or additional authority to oversee prediction markets. Exchanges have approved markets that let traders place real‑money bets on elections, government actions, Federal Reserve decisions, court outcomes, wars and other public events. Selig told the committee that exchanges serve as the “first line of defense” against insider trading and that, after CFTC approval, an exchange can certify that individual markets comply with federal law.

Rep. Nikki Budzinski of Illinois expressed skepticism about whether the agency’s staffing model can provide adequate oversight. She introduced a bipartisan bill to bar the president, executive‑branch political appointees, members of Congress and certain family members from betting on government actions through prediction platforms. At least two other Democratic lawmakers have since endorsed the measure.

Prediction‑market firms have drawn high‑profile political ties. A planned platform from a company linked to former President Trump and advisory and investment ties involving Donald Trump Jr. connect major figures to the space. The CFTC cleared Polymarket last year to serve U.S. customers, though the U.S. site is not fully operational. Kalshi issued $2.2 million in refunds and faces lawsuits after a disputed market tied to Iran’s supreme leader, and the company disciplined three congressional candidates after finding they had bet on their own races.

A former senior CFTC official criticized the staff reductions, saying experienced enforcement lawyers and trial attorneys were let go. The former official warned the agency will have to triage enforcement work and predicted, “Some stuff will go unaddressed. They won’t be able to pursue as many matters as they would’ve at full strength.”

The CFTC has requested a $410 million budget and authority for 650 full‑time positions from Congress. A recent agency report said applications from firms seeking approval to operate prediction‑market exchanges are at record levels.