U.S. CFTC’s Chicago Office Effectively on Track to Be Dismantled

The Chicago office of the U.S. Commodity Futures Trading Commission (CFTC) has effectively entered a path toward dismantlement following the resignation of its last remaining enforcement attorney. The office once served as a core enforcement unit within the CFTC.

On the 10th (local time), cryptocurrency-focused outlet Decrypt reported that with the resignation of the Chicago office’s last attorney, the office has lost its practical enforcement function.

In the past, the Chicago office handled some of the most complex and high-priority derivatives and market-manipulation cases.

According to the outlet, the Chicago office was once staffed with around 20 enforcement attorneys and was known as the “top enforcement team.” However, after years of large-scale headcount cuts, the organization shrank rapidly, ultimately leaving it without any of its key personnel.

Decrypt added that despite this situation, the Trump administration is showing moves to assign the CFTC a regulatory and supervisory role over crypto assets and prediction markets. The CFTC has been cited as a key regulator with jurisdiction over crypto-derivatives and event-contract markets.

Regarding the staffing cuts, a former CFTC attorney who was laid off said, “If I were someone else, I’d start a crypto scam in the U.S. right now,” adding, “At present, the CFTC effectively has no police to crack down on it.” He warned that the enforcement staffing gap could have a serious impact on market order.

In the market, some point out that the weakening of the CFTC’s enforcement capabilities could lead to regulatory gaps across the broader crypto and derivatives markets. Attention is on whether Congress and the administration will move to reorganize the CFTC or bolster staffing going forward.