Key facts
- CFTC ends its 'no-deny' policy for enforcement settlements.
- The policy, in place since 1998, prevented settlements if defendants denied allegations.
- CFTC Chairman Mike Selig stated the repeal provides greater flexibility.
- The agency cited the policy may have created an impression of shielding itself from criticism.
- The SEC rescinded a similar policy in May.
- CFTC also moved to vacate a $5 million settlement with Gemini.
The Commodity Futures Trading Commission (CFTC) has repealed its long-standing 'no-deny' settlement policy, which had been in effect since 1998. This policy prevented the agency from accepting settlements in enforcement actions if the defendant denied the allegations. CFTC Chairman Mike Selig announced the repeal, stating that it provides the commission with greater flexibility in resolving enforcement actions and aligns its practices with other federal regulators, including the Securities and Exchange Commission (SEC), which rescinded a similar policy in May. The CFTC indicated that the previous rule may have created the impression that it was attempting to shield itself from criticism. The agency also confirmed it will not newly enforce no-deny clauses in existing settlement agreements. In a related development, the CFTC sought to vacate a $5 million settlement with crypto exchange Gemini, with Chairman Selig describing the case as 'politically targeted'.