The U.S. Commodity Futures Trading Commission (CFTC) will scrap its “no-deny” settlement policy, Chairman Mike Selig announced, giving the agency greater latitude when resolving enforcement actions.
Previously, the CFTC, like the Securities and Exchange Commission (SEC), required settling parties to neither admit nor deny wrongdoing—a framework often criticized for blunting accountability and keeping misconduct out of the public record. By jettisoning the policy, the CFTC follows the SEC’s earlier removal of a similar rule, aligning the two top financial watchdogs’ enforcement strategies.
The shift is a notable change in the U.S. regulatory settlement landscape. It is expected to allow the CFTC to pursue misconduct more vigorously, enhance investor protection, and better address challenges posed by emerging sectors such as cryptocurrency markets.