CFTC Reorganizes Enforcement Division to Prioritize Fraud and End Regulation by Enforcement

The Commodity Futures Trading Commission (CFTC) has announced a major reorganization of its Division of Enforcement, aiming to sharpen its focus on combating fraud, assisting victims, and ending the practice of regulation by enforcement. Announced by CFTC Acting Chairman Caroline D. Pham, the restructuring consolidates previous task forces into a simplified framework designed to maximize enforcement resources. The updated structure is intended to direct regulatory actions toward fraudsters and illicit actors while safeguarding compliant market participants and ensuring due process. Under the new organizational model, enforcement operations are divided into two dedicated units: the Complex Fraud Task Force and the Retail Fraud and General Enforcement Task Force. The Complex Fraud Task Force will oversee all preliminary inquiries, investigations, and litigation concerning complex fraud schemes and market manipulation across all asset classes. Deputy Director Paul Hayeck has been appointed as Acting Chief of this task force. The Retail Fraud and General Enforcement Task Force will concentrate on fraud targeting retail market participants and manage general enforcement actions involving violations of the Commodity Exchange Act. Deputy Director Charles Marvine will serve as Acting Chief for this unit. CFTC Acting Director of Enforcement Brian Young stated that the realignment is designed to enhance the division's capabilities, allowing specialized staff to focus on securing justice for victims and maintaining market integrity. The agency noted that the updated governance model will also improve oversight across enforcement actions to foster consistency, fairness, and transparency.