The federal agency tasked with policing cryptocurrency and prediction markets dramatically scaled back enforcement while intervening on behalf of firms connected to President Donald Trump.

A new report from the New York Times paints a troubling picture inside the Commodity Futures Trading Commission, where career staffers who questioned crypto and prediction-market companies were sidelined, pushed out or investigated as political appointees embraced a friendlier approach toward the rapidly growing industry.

The shake-up unfolded as the Trump family expanded its footprint in cryptocurrency and online betting markets.

The investigation focused on three firms with connections to Trump family business ventures: Crypto.com, Polymarket and Gemini.

Former acting CFTC Chair Caroline D. Pham and senior counsel Brigitte Weyls allegedly intervened repeatedly to help those companies navigate regulatory hurdles, according to current and former staffers who spoke to The Times anonymously out of fear of retaliation.

Trump-backed ventures have launched digital currencies, partnered with crypto exchanges and invested in prediction-market companies that allow users to wager on political and world events.

Several veteran enforcement officials who raised concerns internally were later placed on administrative leave or forced out.

“I’ve been through an almost equal number of Republican and Democratic administrations, and there was always a belief you had to have strong enforcement,” former CFTC enforcement official Gretchen Lowe told The Times. “This is really the first time that politics have affected the C.F.T.C. in such a dramatic way.”

Still, enforcement statistics cited in the report show a sharp decline in crypto-related cases. During the Biden administration, the agency brought more than 80 crypto enforcement actions. Under Trump’s current term, the CFTC has announced only two such cases, both targeting individuals rather than major firms.

The report also detailed how the agency softened its stance toward KuCoin, a Seychelles-based crypto exchange that had pleaded guilty in a Justice Department case involving anti-money-laundering violations. The CFTC ultimately settled with the company for a far smaller penalty than the agency’s attorneys had initially sought.

The White House denied any wrongdoing or conflicts involving the president’s business ties.

“President Trump only acts in the best interests of the American public,” White House spokesman Davis Ingle said. “There are no conflicts of interest.”

The controversy comes as Congress weighs proposals that would give the CFTC broader authority over cryptocurrency regulation, potentially expanding the agency’s influence even as its workforce shrinks.

According to the report, the agency employed about 760 workers at its peak in 2015. As of March, staffing had fallen to roughly 550 employees, its lowest level since the aftermath of the 2008 financial crisis.

Critics warn the combination of lighter enforcement, staff reductions and political pressure could leave consumers vulnerable in an industry already facing persistent fraud and insider trading concerns.