CFTC Lays Off Over 20 Staff Members
The Commodity Futures Trading Commission (CFTC) is undergoing a major overhaul, slashing over 20 staff members, about 4% of its workforce, as part of a broader reorganization.
Staff Reductions and Reorganization
The CFTC, which had 636 full-time employees as of September 30, 2024, began layoffs affecting its enforcement, market oversight, administration, and data divisions.
Earlier this year, the agency offered voluntary resignations, already trimming its ranks. The cuts follow a Supreme Court decision in McMahon v. New York, which, in a 6-3 vote, upheld the Trump administration’s authority to slash 1,378 jobs at the Department of Education.
Democrats and progressives criticized the ruling, but it signals broader federal power to reduce agency staff. Under acting chair Caroline Pham, a Republican, the CFTC has also restructured its enforcement division, hinting at a lighter regulatory approach.
Leadership Gaps and Kalshi’s Opportunity
The CFTC’s leadership is thinning, with only Pham remaining as acting chair after Rostin Behnam’s departure in February and commissioners Summer Mersinger and Christy Goldsmith Romero leaving in May. Kristin Johnson is set to exit later this year, and Pham will step down once Brian Quintenz is confirmed as the new chair.
This leaner CFTC could benefit Kalshi, a prediction market platform relying on self-certification for sports event contracts, its biggest revenue driver.
The CFTC can block contracts deemed against the public interest but has never done so. Fewer staff and a “light-touch” stance may reduce scrutiny, potentially allowing Kalshi to expand its offerings.
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