CFTC Scraps “No-Deny” Policy for Enforcement Settlements
The CFTC has rescinded its “no-deny” policy for settlements, a move Chairman Mike Selig said gives the agency more flexibility in resolving enforcement actions. The change follows a similar step by the SEC.
What happened?
The CFTC has rescinded its “no-deny” policy for settlements, a move Chairman Mike Selig said gives the agency more flexibility in resolving enforcement actions. The change follows a similar step by the SEC.
Why it matters
The development matters because settlement terms shape how regulators, companies and market participants resolve enforcement disputes. With the policy removed, the CFTC says it has more room to structure settlements, though the source material does not specify how future cases may differ in practice.
The Commodity Futures Trading Commission has scrapped its “no-deny” policy for settlements, following a similar move by the Securities and Exchange Commission. CFTC Chairman Mike Selig said the rescission gives the agency more flexibility when settling enforcement actions.
The development matters because settlement terms shape how regulators, companies and market participants resolve enforcement disputes. With the policy removed, the CFTC says it has more room to structure settlements, though the source material does not specify how future cases may differ in practice.
“No-deny” policies generally affect what settling parties can say about allegations after reaching an agreement with a regulator. In this case, the CFTC’s change is presented as part of a broader shift in how financial regulators approach enforcement settlements.
For crypto firms and other market participants overseen by the CFTC, the change is another regulatory process update to watch. The agency remains a key regulator for derivatives markets and has played an important role in crypto-related enforcement.
The source material does not state whether the rescission applies to existing settlements or only future enforcement actions. It also does not provide details on any specific crypto case tied to the policy change.