CFTC Rescinds Longstanding 'No-Deny' Enforcement Settlement Policy

The Commodity Futures Trading Commission (CFTC) has announced the rescission of its longstanding policy regarding denials in enforcement settlements, previously codified in Appendix A to Part 10. Under the former policy, which stood for nearly three decades, the Commission refused to accept settlement offers if the defendant continued to deny the allegations in an administrative order or complaint. Rescinding the rule aligns the CFTC with the standard practices of most other federal agencies. The CFTC stated that eliminating the restriction provides greater flexibility when settling enforcement proceedings. The change is intended to conserve regulatory resources, deliver certainty in legal outcomes, and potentially expedite restitution and the return of funds to injured investors. The Commission also noted that the impact on the public interest from defendants denying allegations is minimal, and the former rule risked creating the false impression that the agency was attempting to shield itself from criticism. CFTC Chairman Michael S. Selig stated that the decision brings the regulator in line with government-wide standards after nearly 30 years of requiring defendants to promise not to publicly dispute allegations. Enforcement Division Director David Miller noted that the measure harmonizes the CFTC's enforcement process with other agencies while supporting fairer resolutions. Following the rescission, the CFTC confirmed it will no longer enforce existing no-deny clauses that have already been finalized. The regulator highlighted that the policy change does not alter its discretion to settle with defendants who decline to admit facts or liability, nor does it prevent the agency from negotiating for admissions where deemed appropriate.