U.S. Senator Elizabeth Warren publicly challenged the Commodity Futures Trading Commission over what she called a rollback of crypto regulation and suspected political interference.

On June 10, CoinPost, a blockchain media outlet, reported that Warren sent an open letter to CFTC Chairman Michael Selick, demanding an explanation of reduced enforcement, staff cuts and whether decisions favored specific companies.

Warren took issue most strongly with a sharp drop in enforcement activity. The CFTC secured more than $17 billion in penalties in fiscal 2024 through 58 enforcement actions. But in the 12 months since the Trump administration took office, the number of actions fell to 11 and total penalties dropped to less than $1 billion. Of that, penalties from cases filed directly by the current administration came to less than $10 million.

Another issue is staff reductions. Reuters reported that the CFTC workforce fell by about 25 percent, and on June 1 the agency was said to have offered employees early retirement packages and additional severance pay. The letter argues that while the number of entities subject to regulation is increasing, supervisory staffing is shrinking instead.

The letter also raised whether companies tied to the Trump family are receiving preferential treatment under CFTC decisions. It cited a New York Times report that former acting CFTC Chair Caroline Pham intervened at least 3 times in ways favorable to a Trump-linked company, and it mentioned the approval of Polymarket's application after Donald Trump Jr. made an investment, priority review for Gemini, and a case involving Crypto.com being neutralised.

Selick's own judgment also came under scrutiny. Warren claimed Selick ordered that a $5 million penalty against Gemini be challenged in court. She also noted that the Winklevoss twins, who founded Gemini, had each donated bitcoin worth $1 million to U.S. President Donald Trump's election campaign.

Selick, in contrast, said at an April House Agriculture Committee hearing that he was pursuing efficiency gains using artificial intelligence tools, and said, "The CFTC is operating more efficiently and effectively than ever." Warren said she sees a gap between that explanation and the agency's actual moves and demanded the submission of related materials.

The controversy also intersects with the CFTC's recent moves to open markets. On May 29, the CFTC approved Kalshi unit KalshiEX's "BTCPERP" as the first regulated perpetual futures product in the United States. On the same day, it issued Coinbase a no-action letter enabling it to provide related services. Warren said this aligns with her concern about an "industry bias" in opening the door to the industry while reducing enforcement.

The letter also took issue with legislative moves in Congress. If the Clarity bill now under review passes, a significant portion of oversight authority for the crypto market could shift to the CFTC. Warren also asked whether the bill tried to reflect a DeFi-related loophole that would allow prediction market operators to offer sports betting and casino games outside regulation under state law or tribal law.

Warren said that as of early 2026 the combined market capitalisation of Kalshi and Polymarket had reached about $60 billion, and that some estimates say prediction-market trading volume could reach $1 trillion by 2030, meaning the risk of an oversight vacuum could grow. She therefore demanded by June 18 the full details of all CFTC staff moves, suspensions and reassignments since Jan. 20, 2025; administrative records related to no-action letters for Polymarket and Gemini; and all communications records with the prediction-market industry related to the Clarity bill.

The letter is being read as pressure that targets both supervisory capacity and conflicts of interest as the CFTC moves to ease regulation of crypto and prediction markets. In particular, the fact that enforcement reductions and staffing cuts are proceeding in parallel at a time when an expansion of oversight authority is being discussed has increased the likelihood that it will become a central issue in future congressional debate.