CFTC closes Chicago office amid crypto oversight shift

The CFTC closed its Chicago enforcement office, cutting all staff, as it shifts focus to crypto and prediction markets, sparking concerns about its regulatory effectiveness.

The Commodity Futures Trading Commission (CFTC) has closed its Chicago enforcement office, reducing staff from 20 attorneys to none. This move is part of the agency’s strategy to expand its regulatory focus on the rapidly growing cryptocurrency and prediction market sectors. Previously, the Chicago office handled some of the CFTC’s most complex enforcement actions, including major cases involving leading crypto exchanges. The elimination of this enforcement team has led to a 99.9% drop in monetary relief obtained by the agency, raising concerns about its ability to effectively oversee evolving markets. While CFTC leadership promotes a pro-innovation approach and aims to classify digital assets as commodities to attract industry players back to the U.S., the closure has sparked warnings from former staff about a potential enforcement gap as the agency takes on greater responsibility in crypto and prediction markets.