A report published by The New York Times and highlighted by Raw Story alleges that the Trump administration has reshaped the Commodity Futures Trading Commission (CFTC) in ways that favor online prediction market companies such as Kalshi and Polymarket.

According to the report, several agency employees who raised concerns about oversight, cryptocurrency enforcement, or potential conflicts involving members of Donald Trump’s family were placed on leave or marginalized within the agency.

Critics argue that the administration has filled key positions at the CFTC with officials closely tied to the financial technology and cryptocurrency industries, reducing regulatory scrutiny over rapidly growing online betting platforms.The article also describes tensions surrounding Brian Quintenz, Trump’s former nominee to lead the CFTC.

Although considered industry-friendly, Quintenz reportedly lost support from cryptocurrency figures Cameron and Tyler Winklevoss after declining to back complaints against the agency from their exchange.

The report suggests that even officials aligned with the industry faced pressure if they did not fully support the interests of major crypto and betting companies.At the same time, the Trump administration is engaged in legal disputes with multiple states attempting to regulate or ban prediction markets.

The CFTC claims that federal law gives it sole authority to oversee these platforms, while at least sixteen states are pursuing legal action or restrictions.Minnesota recently passed legislation prohibiting prediction markets from operating or advertising in the state, prompting a federal lawsuit.

Supporters of the Minnesota law argue that online betting platforms increasingly target younger users and contribute to financial harm among people between 18 and 21 years old.