--- title: "CFTC Continues Crypto Deregulation Pivot, But Former Attorney Warns That Only Makes 'Crypto Scams' More Appealing" type: "News" locale: "en" url: "https://longbridge.com/en/news/275511202.md" description: "The CFTC's Chicago office has disbanded its litigation team, leading to a significant reduction in enforcement capabilities as it shifts towards a pro-innovation framework for crypto and prediction markets. The agency's monetary relief secured has plummeted from $17.1 billion in 2024 to $9.2 million in 2025. Critics warn that this deregulation may encourage crypto scams, as the former chief trial attorney noted the absence of enforcement personnel. CFTC Chairman Michael Selig aims to establish a global standard for the U.S. crypto market while expanding jurisdiction over prediction markets." datetime: "2026-02-10T21:10:12.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/275511202.md) - [en](https://longbridge.com/en/news/275511202.md) - [zh-HK](https://longbridge.com/zh-HK/news/275511202.md) --- # CFTC Continues Crypto Deregulation Pivot, But Former Attorney Warns That Only Makes 'Crypto Scams' More Appealing The CFTC's Chicago office has reportedly been emptied of its litigation team, leading to a chilling warning from a 26-year agency veteran just as the regulator pivots to embrace crypto and prediction markets. According to a report by Decrypt on Tuesday, the Commodities Futures Trading Commission (CFTC) has seen a drastic shift in its enforcement capabilities under new leadership. The Chicago enforcement staff has dropped from 20 attorneys to 0, while the monetary relief secured dropped from $17.1 billion in 2024 to $9.2 million in 2025 — a 99.9% decline. With the agency's most complex litigation team—responsible for the Binance and FTX cases—now gone, one laid-off chief trial attorney offered a stark assessment of the current regulatory landscape: “If I was a different person I would launch a crypto scam right now, because there’s no cops on the beat.” ## How The CFTC Is Pivoting On Crypto And Prediction Markets The dismantling of the enforcement wing appears to be part of a broader strategic pivot by CFTC Chairman **Michael Selig**, who is moving the agency away from “regulation by enforcement” toward a pro-innovation framework. Selig recently declared that the new U.S. crypto market structure will be the global “gold standard,” aiming to classify digital assets as commodities to attract builders back to the U.S. Selig has also directed staff to drop proposals banning sports and political contracts, arguing it is “time for clear rules” for the exploding prediction markets sector. While the industry has long clamored for regulatory clarity over lawsuits, critics argue the pendulum may have swung too far. The agency is aggressively expanding its jurisdiction into thousands of new prediction markets just as it loses the personnel required to police insider trading and fraud within them. _Image: Shutterstock_ ### Related Stocks - [BITO.US](https://longbridge.com/en/quote/BITO.US.md) - [FIAT.US](https://longbridge.com/en/quote/FIAT.US.md) - [BITB.US](https://longbridge.com/en/quote/BITB.US.md) - [LTCN.US](https://longbridge.com/en/quote/LTCN.US.md) - [REKT.US](https://longbridge.com/en/quote/REKT.US.md) - [BCOR.US](https://longbridge.com/en/quote/BCOR.US.md) - [GSOL.US](https://longbridge.com/en/quote/GSOL.US.md) - [GLXY.US](https://longbridge.com/en/quote/GLXY.US.md) - [HODL.US](https://longbridge.com/en/quote/HODL.US.md) - [COIN.US](https://longbridge.com/en/quote/COIN.US.md) - [BTCO.US](https://longbridge.com/en/quote/BTCO.US.md) - [BTBT.US](https://longbridge.com/en/quote/BTBT.US.md) - [MARA.US](https://longbridge.com/en/quote/MARA.US.md) - [GBTC.US](https://longbridge.com/en/quote/GBTC.US.md) - [LMBO.US](https://longbridge.com/en/quote/LMBO.US.md) - [ARKB.US](https://longbridge.com/en/quote/ARKB.US.md) - [ETH.US](https://longbridge.com/en/quote/ETH.US.md) ## Related News & Research - [CME Group to offer 24/7 crypto derivatives trading May 29, adding Avalanche and Sui contracts](https://longbridge.com/en/news/281895665.md) - [EToro enters New York, clearing BitLicense hurdle years after FTX bankruptcy](https://longbridge.com/en/news/281483283.md) - [Eightco Highlights AI and Crypto Treasury Concentration Strategy](https://longbridge.com/en/news/281912032.md) - [Former FTX head of engineering fined $3.7M to resolve CFTC lawsuit](https://longbridge.com/en/news/281476985.md) - [Morgan Stanley (MS) Picked a Great Day to Launch Its New Bitcoin ETF](https://longbridge.com/en/news/282082197.md)