As prediction markets explode in popularity, the regulator that polices them has been shrinking | CNN Politics

While prediction markets are booming – allowing anyone to bet on nearly everything from sports to elections to who’s going to win season 50 of “Survivor” – the little-known federal agency that regulates the industry has shrunk to its smallest size in 15 years. The Commodity Futures Trading Commission workforce has dropped by 24% since President Donald Trump returned to office, according to the latest available data, raising concerns about its ability to police insider trading and protect consumers. Lawmakers, former officials and government watchdogs have sounded the alarm after seeing well-timed bets about US military strikes against Iran and Taylor Swift’s engagement that suggested traders may have cashed in on government secrets or insider information. Those worries came to a head last week, when federal authorities arrested a US special forces soldier who was involved in the operation capturing Venezuelan leader Nicolás Maduro, and allegedly profited more than $400,000 by betting about the raid. In addition to criminal charges, the CFTC sued the soldier to secure restitution, impose penalties and ban him from future trading. The CFTC is also reportedly investigat