Democratic senators question CFTC staffing cuts in Chicago enforcement office

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Circular seal of the Commodity Futures Trading Commission (CFTC) centered over a Chicago skyline at sunset, featuring scales of justice and wheat within a blue and gold emblem. Democratic senators question CFTC staffing cuts in Chicago office enforcement concerns

5 Democratic senators are demanding readability from the nation’s prime derivatives regulator after studying that its Chicago enforcement staff could have been dramatically lowered.

In a letter issued Thursday (February 26) to Commodity Futures Buying and selling Fee Chairman Michael Selig, Sens. Richard J. Durbin, Amy Klobuchar, Cory A. Booker, Raphael Warnock and Adam B. Schiff mentioned they’re “deeply involved” that the company’s Central Regional Workplace in Chicago has shrunk from 20 enforcement attorneys to none.

NEW: 5 U.S. senators warn of "important weakening" on the CFTC's Chicago workplace in a letter to Chair Mike Selig.

Senators Durbin, Klobuchar, Booker, Warnock, and Schiff signed the letter.

"We write to precise our deep concern relating to experiences that the Central Regional… https://t.co/cyv0ii3KE1 pic.twitter.com/oZX79gpFwG

— Nick Devor (@nickdevor_) February 27, 2026

They warned that if these numbers are right, the pullback would undercut one of many CFTC’s most crucial enforcement facilities.

Congress created the CFTC in 1974 to police U.S. derivatives markets. Its Division of Enforcement brings circumstances involving fraud, insider buying and selling, market manipulation and false reporting beneath the Commodity Trade Act. For years, the Chicago workplace has been on the coronary heart of that effort, dealing with complicated investigations tied to futures, commodities and, extra not too long ago, crypto markets.

The staff reportedly helped ship a number of the company’s most eye-catching outcomes. In 2023, the CFTC won a $2.7 billion penalty against Binance together with a $150 million civil penalty towards its CEO. A 12 months later, it ordered the collapsed crypto exchange FTX to pay $12.7 billion in aid to victims. The senators pointed to these outcomes as proof that seasoned trial legal professionals matter.

Lawmakers press for CFTC staffing particulars in Chicago

In line with the letter, departures, retirements and inside transfers have left the Chicago enforcement department with none trial attorneys. The lawmakers mentioned total staffing within the Division of Enforcement has fallen by not less than 25 %, and probably extra.

The drop in personnel has coincided with a steep decline in new circumstances. Throughout fiscal 12 months 2025, the CFTC filed 13 enforcement actions and recovered lower than $10 million. That is in sharp distinction to 58 actions yielding $17.1 billion in fiscal 12 months 2024 and 96 actions producing $4.3 billion in fiscal 12 months 2023.

The senators additionally gave a blunt warning from a former CFTC lawyer who mentioned, “If I used to be a unique particular person, I might launch a crypto rip-off proper now, as a result of there’s no cops on the beat.” Whether or not or not one agrees with that characterization, they wrote, it reiterates issues about diminished enforcement presence.

At his confirmation hearing earlier than the Senate Committee on Agriculture, Vitamin, and Forestry, Selig described the CFTC as “a cop on the beat” and mentioned it’s “vitally vital” that the company has the sources it must do its job.

His tenure has already drawn scrutiny past staffing. The company not too long ago withdrew a proposed ban on certain event-based contracts tied to prediction markets, together with political contests. Selig has additionally confronted pointed questions from senators about sports activities prediction markets and whether or not they fall inside the CFTC’s remit. The fee has weighed in on litigation involving prediction market operator Kalshi, together with issues related to Nevada regulators, whereas different senators have urged a crackdown on contracts linked to events such as deaths.

Towards that backdrop, the 5 Democrats are asking what number of enforcement attorneys are stationed in every regional workplace, whether or not Chicago vacancies shall be crammed and on what timeline, how present staffing compares with fiscal 12 months 2024 ranges, and whether or not extra funding has been requested or sources shifted to protect enforcement energy.

They gave Selig till March 12, 2026 to reply, saying he’s uniquely positioned to revive the Division of Enforcement and shield market integrity.

Featured picture: Grok / Canva

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