CFTC Ends 30-Year 'No-Deny' Settlement Policy, Allowing Defendants to Publicly Dispute Allegations

The Commodity Futures Trading Commission has rescinded a nearly 30-year-old enforcement policy that prohibited defendants from publicly denying allegations after settling with the agency. The policy change, codified in Appendix A to Part 10 of the Commission's rules, eliminates a long-standing requirement that firms and individuals settling with the CFTC avoid publicly disputing the regulator's claims.

The rescission aligns the CFTC with most other federal agencies and may reshape enforcement settlement negotiations across derivatives and digital asset markets. The move gives regulators greater flexibility in resolving enforcement matters while conserving resources and potentially accelerating restitution for harmed investors. CFTC Chairman Michael Selig said, "For nearly three decades, the Commission has refused to settle cases unless the defendant promised not to publicly deny the Commission's allegations. I am pleased that we are rescinding the no-deny policy consistent with regulators throughout the government." The CFTC retains discretion to negotiate admissions of liability in specific cases and to decline settlements entirely.