TLDRSenator Elizabeth Warren questioned whether the CFTC can handle expanded crypto oversight.Warren said staffing cuts and reduced enforcement weaken the agency’s capacity.The CFTC workforce has reportedly declined by about 25% in recent years.Warren criticized the agency’s decision to back vacating the 2022 Gemini judgment.The CFTC concluded the Gemini complaint would not meet current enforcement standards.Senator Elizabeth Warren has challenged the readiness of the Commodity Futures Trading Commission as Congress weighs broader crypto oversight. She warned that staffing cuts and reduced enforcement could strain the agency. Her letter to Chair Michael Selig described the situation as a “recipe for disaster.”CFTC Staffing and Enforcement Under ScrutinyWarren sent the letter on Friday as lawmakers advanced legislation expanding CFTC authority over crypto and prediction markets. She argued the agency lacks the capacity to manage wider responsibilities under current conditions.She wrote that a smaller workforce and fewer enforcement actions weaken oversight. Warren cited reports that staff levels have fallen by about 25%.Warren also pointed to a decline in enforcement since President Donald Trump took office. She said the trend raises concerns about the agency’s ability to police complex crypto firms.In her letter, Warren stated, “A CFTC with fewer staff members, reduced enforcement activity, and expanded responsibilities is a recipe for disaster.” She asked Selig to explain how the agency would handle expanded duties.Warren further questioned internal decisions affecting oversight priorities. She requested records on staff reassignments and communications with industry participants.She also asked for documents covering contacts between the CFTC and crypto firms regarding the Clarity Act. The request included communications with prediction market platforms.Disputes Over Crypto and Prediction MarketsWarren referenced the agency’s recent handling of cases involving Gemini. She highlighted the CFTC’s decision to support vacating a 2022 judgment.That case alleged Gemini made “false or misleading statements” in 2017 about bitcoin futures manipulation risks. The agency later concluded the complaint “should not have been filed.”The CFTC said the case would not meet enforcement standards today. Warren questioned the reasoning behind that conclusion.She also cited reports that officials who raised concerns about firms like Polymarket and Crypto.com left the agency. Warren asked whether internal pressure influenced those departures.Selig has maintained that prediction markets fall under the CFTC’s “exclusive jurisdiction.” However, several states argue that such platforms violate local gambling laws.Those disputes have led the CFTC to sue states that attempted to block prediction market operations. Warren referenced those legal actions in her letter.She requested details on communications between agency officials and prediction market companies. She also asked for records related to enforcement strategy shifts.Congress continues to debate legislation that would expand CFTC oversight of crypto markets. Warren’s letter seeks further clarity on staffing, enforcement, and internal decision-making as those discussions proceed.The post Warren Warns Weakened CFTC Risks Crypto Oversight Gaps appeared first on Blockonomi.