A February 2026 report on the staffing cuts happening at the US Commodity Futures Trading Commission (CFTC) Chicago enforcement office has led to the affected lawyers suggesting that criminals now have free rein, as there are “no cops on the beat.”
In the past, the Chicago division was seen as the agency’s peak or flagship enforcement unit, known for handling complex cases that included many major crypto fraud actions and civil suits against the recently emboldened Sam Bankman-Fried.
The Chicago division has been gutted
As of February 11, 2026, the CFTC’s Chicago enforcement office, which once had about 20 enforcement lawyers, has none. According to reports, some were laid off and some retired, and there were also alleged reductions in force, which some former staff described as targeted or retaliatory.
There were also those who left. It went on like this over time until the numbers dwindled to a lone lawyer holding down the fort. However, that last lawyer has also resigned as of February 11, leaving the unit with only supportive staff at most.
This occurred amid broader CFTC staff reductions triggered by leadership shifts. Reports also claim there has been over 20% reduction agency-wide recently.
Exiting lawyer drops ominous open season for fraud warning
The staff reductions at the CFTC have been deliberate, and now that Chicago, described as the “spiritual home of the futures markets,” has taken such damage, former staff believe trouble could be brewing.
“To wipe out the enforcement staff in a place like Chicago sends a very bad signal to market participants about whether the government is watching what they’re doing and whether or not they have to abide by the law,” one said.
Another ousted lawyer reportedly said to Nick Devor, a gambling & prediction markets reporter for Barron: “If I was a different person, I would launch a crypto scam right now, because there’s no cops on the beat.”
This directly condemns the state of things at the Chicago unit. There is now an enforcement vacuum in a unit that has played critical roles in past major crypto settlements, even as the CFTC’s responsibilities potentially grow under the ever-evolving US policy.
The fact that enforcement output and cases have dropped or been resolved by the Trump SEC and CFTC already caused some people to worry that crimes have gone up.
However, now that the gutting of the CFTC’s Chicago enforcement unit has come to light, even if they had not, the ousted lawyers think bad actors will understand the opportunity this presents, and crime will become even more rampant.
What this means for sectors overseen by the CFTC in Chicago
As of February 2026, the CFTC oversees several sectors, including futures contracts and options, swaps, commodity derivatives, digital assets classified as commodities and prediction markets.
The current state of the CFTC may be good for innovation, as people feel more confident to experiment. However, reduced enforcement muscle potentially creates blind spots for detecting fraud or market abuse in growing sectors like crypto and prediction markets.
It is no secret that the CFTC’s responsibilities could grow even more after the dust settles on US policy, but if it is understaffed, it becomes possible that bad actors could have free run. That is why the ousted staff of the Chicago Unit foresee crime going up.
It has also not gone over many heads that this staffing crisis the CFTC is facing is happening at a time when “prediction markets are threatening to turn the entire world into a casino.”
Less enforcement muscle means the CFTC has less oversight concerning what is happening in the prediction markets sector, at a time when regulations meant to protect and curb excesses are in the process of being formulated.
Source: https://www.cryptopolitan.com/cftc-lawyers-declare-crypto-scam-open-season/
