Warren Statement on Government Watchdog Investigation into CFTC Staffing Cuts

Warren Statement on Government Watchdog Investigation into CFTC Staffing Cuts

Text of Letter to GAO (PDF)

Washington, D.C. - In response to a request from U.S. Senator Elizabeth Warren (D-Mass.), Ranking Member of the Senate Banking, Housing, and Urban Affairs Committee, the U.S. Government Accountability Office (GAO) announced that it will investigate actions taken at the Commodity Futures Trading Commission (CFTC) to reduce the agency's workforce and assess the impact of those cuts on the Commission's ability to carry out its responsibilities. This follows reporting that the CFTC "purged" staff that raised concerns about risks posed by crypto and prediction markets companies.

"The Trump Administration is hellbent on ramming through crypto market structure legislation that would dump massive new responsibilities on the CFTC - all while gutting the very workforce needed to police these markets. You can't hand the financial cops a bigger beat with fewer officers. We need a thorough investigation including into whether the agency is being gutted at the behest of powerful industry players in crypto and prediction markets," said Ranking Member Warren.

Since January 2025, CFTC staffing has fallen by 25 percent, and the agency was reportedly still offering buyouts and early retirement packages as recently as June 2026. These staffing cuts have been accompanied by a steep decline in CFTC enforcement actions over the same period. According to Reuters, the agency brought 58 enforcement actions and secured over $17.1 billion in monetary relief in fiscal year 2024. In the 12 months since a change to the Trump Administration, the agency brought just 11 enforcement actions and obtained less than $1 billion in monetary relief.

In her July request, Ranking Member Warren warned that staffing losses could undermine the CFTC's ability to enforce existing law and oversee the derivatives markets at a time when the agency is also confronting growing demands related to cryptocurrency and prediction markets. Warren specifically asked GAO to examine the extent and nature of the CFTC's workforce reductions, the impact of those reductions on the Commission's ability to fulfill its statutory responsibilities, and whether staffing losses have affected the agency's enforcement capabilities.

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