CFTC follows SEC in scrapping ‘no-deny’ policy for settlements
The CFTC dropped its long-running no-deny settlement rule, saying it now has more flexibility in enforcement deals.
Intelligence analysis by GPT-5.4 Mini
The CFTC rescinded a policy dating to 1998 that blocked settlements if defendants denied the agency’s claims. The change aligns it with the SEC and comes as US regulators keep unwinding some Biden-era crypto enforcement actions.
The CFTC removed a rule that used to force people who settled cases to stay quiet about the claims against them. It is like letting two kids end an argument without one being told to say they did not complain.
Analysis
What changed
The US Commodity Futures Trading Commission has scrapped its long-standing “no-deny” policy, which had prevented the agency from settling a case if the defendant would not agree to stay silent about the allegations. The policy had been in place since 1998.
Why the CFTC says it acted
According to the CFTC, the old rule “may have created an incorrect impression” that the agency was avoiding criticism. Chairman Mike Selig said the commission is now rescinding the policy in line with regulators across government and that the change gives the agency more flexibility when settling enforcement actions.
What this means in practice
The CFTC said it will not enforce existing no-deny provisions. At the same time, the agency may still require some defendants to admit certain facts or liabilities as part of a settlement. That means the policy change does not eliminate conditions in settlements, but it does remove a blanket restriction that previously shaped negotiations.
Crypto context
The article says crypto companies have criticized no-deny rules on free-speech grounds when facing CFTC or SEC enforcement. It also notes that the SEC removed a similar policy in May. The timing matters because the Trump administration has been rolling back some enforcement actions taken under the Biden administration.
The piece adds that the CFTC recently sought to vacate its $5 million settlement with Gemini, which Selig described as politically targeted. Former CFTC chair Tim Massad called that reversal “extraordinarily unusual,” underscoring that the agency’s current direction is already drawing scrutiny.
Key points
- The CFTC rescinded its no-deny settlement policy, which dated to 1998.
- The agency said the old rule may have created the wrong impression about shielding itself from criticism.
- Mike Selig said the change gives the CFTC more flexibility in enforcement settlements.
- The CFTC will not enforce existing no-deny provisions, but may still require some admissions.
- The move follows the SEC’s similar rollback in May and comes amid broader changes in US crypto enforcement.
If the change makes settlements easier to reach, crypto firms and regulators may resolve disputes faster. The CFTC could also use the new flexibility to negotiate outcomes that fit individual cases instead of relying on a blanket rule.
The change may not reduce conflict if regulators still insist on admissions of facts or liability in some cases. It could also keep drawing criticism from crypto firms that see enforcement settlements as politically driven.
