U.S. Senator Warren Questions CFTC’s Ability to Regulate Crypto and Prediction Markets

ChainCatcher report, according to The Block, U.S. Senator Elizabeth Warren wrote a letter to CFTC Chairman Michael Selig, questioning whether the agency has the capacity to assume greater regulatory responsibilities over cryptocurrency and prediction markets. Warren noted that CFTC staff has decreased by approximately 25% and enforcement activities have dropped significantly, making any expansion of its mandate a “recipe for disaster.” She criticized the CFTC’s handling of cases involving Gemini, Polymarket, and Crypto.com, and pointed out that officials who raised concerns about these companies were sidelined within the agency. Selig, however, maintained that prediction markets and event contracts fall under the CFTC’s “exclusive jurisdiction,” noting that the agency has even sued several states attempting to ban the operation of prediction market platforms. In her letter, Warren requested that the agency provide records related to staffing changes, communications with prediction market companies, and the Clarity Act.