Michael S. Selig, Policy Change, Washington 2026
WASHINGTON – The Commodity Futures Trading Commission (CFTC) announced today a significant shift in its enforcement settlement policies, rescinding a long-standing rule that required defendants to admit wrongdoing as a condition of settlement. The change, effective immediately, aims to streamline enforcement actions and expedite the return of funds to investors, according to a press release issued June 3, 2026.
For nearly three decades, the CFTC adhered to a “no-deny” policy, refusing to accept settlement offers from individuals or companies who continued to dispute the allegations leveled against them. CFTC Chairman Michael S. Selig stated the rescission brings the agency in line with the majority of other federal regulators. “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,” he said.
The agency argues that the previous policy created unnecessary hurdles in reaching settlements, potentially delaying restitution for harmed investors and consuming valuable agency resources. Officials believe that public denials of allegations, even after a settlement, often have minimal impact on the public interest. The CFTC also expressed concern that the policy fostered the perception that the Commission was attempting to avoid public scrutiny.
David Miller, Director of the Division of Enforcement, emphasized the move ensures fairer resolutions in enforcement matters. The CFTC clarified that it retains full discretion to negotiate for admissions of fact or liability in settlements, and the rescission of the no-deny policy does not affect that ability. Furthermore, the Commission will not enforce existing “no-deny” provisions already included in prior settlements.
The policy change is expected to have a broad impact on future CFTC enforcement actions, potentially leading to quicker resolutions and increased recovery of funds for defrauded investors. While the immediate impact remains to be seen, the CFTC views this as a positive step toward a more efficient and effective regulatory framework.
-CFTC-
Source: CFTC.gov
Source: https://www.cftc.gov/PressRoom/PressReleases/9247-26