The Commodity Futures Trading Commission (CFTC), the primary U.S. regulator for derivatives markets and an increasingly influential player in overseeing crypto assets, is facing a period of internal upheaval just as its responsibilities are rapidly expanding. As cryptocurrency markets boom and regulatory expectations mount, the agency is grappling with a wave of staff cuts and leadership turnover.

Recently, the CFTC initiated layoffs impacting more than two dozen positions, affecting its enforcement, market oversight, administration, and data divisions. This reduction represents about 4% of its total workforce. The restructuring comes on the heels of earlier voluntary resignation offers, and has only intensified the atmosphere of uncertainty within the agency.

Leadership transitions have compounded the turbulence. The commission’s ranks are thinning, with only one commissioner, Acting Chair Caroline Pham, expected to remain until a replacement nominee is confirmed. Other key commissioners have departed over the past several months, leaving the agency with a skeleton crew at the helm right when a cohesive leadership structure is most needed.

To navigate ongoing budget pressures, the CFTC has also renegotiated its office leases, securing a short-term extension at its existing headquarters at a reduced rate and planning a move to new, more cost-effective offices next year. These cost-saving measures offer some relief, but the strain is evident as employees describe a workplace marked by anxiety, suspicion, and uncertainty about the agency’s ability to keep pace with its growing portfolio.

Despite these internal challenges, the CFTC remains under pressure to establish regulatory clarity around the burgeoning crypto markets. The agency’s effectiveness in this critical moment may hinge on whether it can stabilize its workforce and restore confidence both internally and among the industries it regulates. As the crypto sector looks for clear guidance, the turbulence within the CFTC raises questions about how prepared it is to meet the moment.