Warren Calls For GAO Investigation Into Deep CFTC Staffing Cuts

Warren Calls For GAO Investigation Into Deep CFTC Staffing Cuts

As concerns grow over prediction markets and crypto market structure legislation, Warren warns that the CFTC may not be equipped to enforce laws protecting investors and the integrity of our markets

Text of Letter (PDF)

Washington, D.C. - Today, U.S. Senator Elizabeth Warren (D-Mass.), Ranking Member of the Senate Banking, Housing and Urban Affairs Committee, sent a letter to Acting Comptroller General Orice Williams Brown urging the Government Accountability Office (GAO), to launch a review of staffing cuts at the Commodity Futures Trading Commission (CFTC) and their impact on the agency's enforcement capability and broader mandate to regulate the American derivatives market.

The Ranking Member raised concerns about deep cuts in CFTC staffing made as part of a government-wide purge of civil servants - and the impact of those cuts on the agency's ability to enforce the law: "Since January 2025, the agency's staff has shrunk by 25 percent, and as recently as June 1, 2026, the CFTC was reportedly 'offering buyouts and early retirement packages' to staff. The CFTC has simultaneously seen a precipitous drop in enforcement activity. … According to Reuters, 'In the 2024 fiscal year, the agency brought 58 enforcement actions and obtained monetary relief of over $17.1 billion. In the 12 months since the change in administration, the agency brought just 11 enforcement actions and obtained less than $1 billion in monetary relief-less than $10 million of which resulted from actions filed by the current administration.'"

Ranking Member Warren also raised concerns about reports that at least some of the firings may have aligned with industry interests. According to the New York Times, the "Commission has shrunk its work force, purged career officials, sharply curtailed crypto enforcement and helped out prediction markets at virtually every turn." Reporting suggested that the CFTC "purged" staff that raised concerns about the operations of crypto and prediction markets companies.

The Ranking Member warned that cutting staff and gutting enforcement is especially problematic at a time the CFTC's responsibility could grow significantly:"For one thing, the agency has asserted exclusive jurisdiction over prediction markets, in an attempt to crowd out state and tribal gambling authorities. The problem may be compounded by crypto market structure legislation working its way through Congress that could require significant CFTC resources to implement."

Given reasonable concerns that staffing cuts may have a material impact on the CFTC's ability to carry out its mandate as required by current law, the Ranking Member requested that the GAO thoroughly reviews the staffing cuts.

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