The CFTC has reduced its enforcement staff by 24% under acting chair Caroline Pham, a Biden nominee later promoted by Trump. The cuts targeted experienced personnel, including trial attorneys, raising concerns about the agency's capacity to police increasingly complex prediction markets where traders now wager on everything from Fed decisions to crypto policy.

Former officials describe the cuts as illogical, with one noting: 'They targeted people who were experienced and well-regarded.' Meanwhile, prediction markets have expanded into high-risk territory—including geopolitical events and regulatory outcomes—creating fertile ground for insider trading.

Chairman Michael Selig claims AI and efficiency measures compensate for reduced headcount: 'We are operating more effectively than ever before.' The staffing changes follow resignations triggered by Elon Musk-backed government efficiency initiatives.