Regulatory oversight of crypto and prediction markets has sharply declined under the current administration, with the responsible agency significantly reducing both its workforce and enforcement efforts. While the agency is now charged with developing new rules for these high-risk sectors, critics warn that diminished resources and activity could leave gaps in consumer protection and market stability. The shift raises questions about whether the agency can effectively balance rulemaking with its core enforcement responsibilities amid growing industry concerns. Industry observers are closely watching how the agency’s reduced capacity will impact its ability to address emerging risks in digital financial markets.
Even as the agency is tasked with drawing up new rules for crypto and prediction markets, its staffing and enforcement actions have dropped precipitously during the second Trump administration.
