The US CFTC is cutting its "top enforcement" team as it expands oversight of crypto and prediction markets.

PANews reported on February 11 that, according to Decrypt, the entire enforcement team of the Commodity Futures Trading Commission (CFTC) Chicago office has left the organization. This office, once considered the agency's "top enforcement force" and previously boasting 20 enforcement lawyers, is now entirely wiped out. This staff reduction comes as the CFTC seeks to significantly expand its regulatory scope to the cryptocurrency and prediction market sectors.

The report points out that the same leadership that oversaw the CFTC's downsizing last year actively advocated for expanding the agency's jurisdiction to include most of the cryptocurrency market and sports betting platforms. Caroline Pham, who will serve as acting chairman of the CFTC until 2025, spearheaded a reduction of over 21% in the agency's staff last year and is currently working at the crypto company MoonPay. A former CFTC enforcement lawyer stated that the layoffs were targeted because the Chicago office has expertise and a key role in negotiating multi-billion dollar settlements with crypto companies like FTX and Binance.