WASHINGTON – The leading Democrat on the U.S. Senate Banking Committee has raised serious questions about alleged bias and outside meddling at a key federal financial regulator.
Senator Elizabeth Warren sent a letter Friday to Michael Selig, the chairman of the Commodity Futures Trading Commission, expressing alarm over recent New York Times coverage that detailed claims of improper interference and preferential treatment for cryptocurrency and prediction market businesses.
Warren’s correspondence to Selig, who became chairman in December and currently serves as the only active commissioner on the typically five-person panel, referenced Times reporting and other coverage suggesting agency officials stepped in to help firms connected to Trump allies while retaliating against employees who resisted such efforts.
The CFTC did not provide an immediate response to requests for comment Friday. When contacted by The Times previously, the White House stated that President Trump has no conflicts of interest in these matters.
Under Trump’s leadership of the CFTC, cryptocurrency firms and prediction market operators have seen significant benefits, including the withdrawal of enforcement cases against these sectors and the development of regulations designed to encourage industry expansion.
However, lawmakers are increasingly examining the prediction market industry over potential insider trading violations.
The agency’s workforce has declined dramatically from last year to levels not seen since the 2008 financial crisis, while enforcement actions have similarly decreased.
“Taken together, these are concerning signs of a CFTC beholden to political pressures and interests of the wealthy insiders, unbound by the rule of law and failing to protect investors and market integrity,” Warren wrote.
