What policy did the CFTC eliminate?

The US Commodity Futures Trading Commission (CFTC) eliminated its long-standing "no-deny" policy, which required defendants settling enforcement actions to avoid publicly denying the agency's allegations. The policy had been in place since 1998.

Why did the CFTC remove the no-deny policy?

The CFTC said the policy may have created the impression that the agency was trying to shield itself from criticism. Chairman Mike Selig said removing the rule aligns the agency with practices used by other regulators across the US government.

What did CFTC Chairman Mike Selig say about the change?

Selig said the CFTC had spent nearly three decades requiring defendants to agree not to publicly deny allegations when settling cases. He argued that ending the policy provides greater flexibility and brings the agency into line with other regulators.

How does this compare with the SEC’s recent actions?

The move follows a similar decision by the US Securities and Exchange Commission (SEC), which rescinded its own no-deny settlement policy in May. Both agencies are revisiting enforcement approaches under the current administration.

Why is this important for crypto companies?

Many cryptocurrency firms have argued that no-deny provisions limited their ability to defend themselves publicly while settling regulatory disputes. The policy change may allow companies to resolve cases without remaining silent about the allegations.

Can defendants now completely reject CFTC allegations after settling?

Not necessarily. While the CFTC will no longer enforce existing no-deny provisions, it said future settlements may still require defendants to admit specific facts, conduct or liabilities depending on the circumstances.

Does this mean the CFTC is becoming more crypto-friendly?

The change could be viewed as part of a broader shift in regulatory tone, but it does not remove the agency's enforcement powers. The CFTC can still investigate, sue and penalise companies that violate commodity or derivatives laws.

How could this affect future crypto enforcement cases?

Defendants may be more willing to negotiate settlements if they retain greater freedom to publicly discuss or dispute allegations. This could change how enforcement cases are resolved, particularly in high-profile crypto disputes.

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CFTC drops settlement speech restriction policy

Written by Brie CarterPublished Jun 4, 2026, 3:41 AM

The US Commodity Futures Trading Commission has rescinded a long-standing policy that required defendants settling enforcement actions to refrain from publicly denying the agency’s allegations.

The policy, first adopted in 1998, was removed after the CFTC concluded it may have created the impression that the regulator was attempting to shield itself from criticism.

“For nearly three decades, the Commission has refused to settle cases unless the defendant promised not to publicly deny the Commission’s allegations,”

Said CFTC Chairman, Mike Selig.

The decision follows a similar move by the US Securities and Exchange Commission, which abandoned its own “no-deny” settlement policy in May as regulators reconsider enforcement practices.

“I am pleased that we are rescinding the no-deny policy consistent with regulators throughout the government,”

Selig said.

The change may be particularly significant for cryptocurrency companies, many of which previously argued that no-deny settlement provisions limited their ability to publicly challenge regulatory claims while resolving cases.

The CFTC said it will no longer enforce existing no-deny provisions, although it may still require certain defendants to admit specific facts or liabilities as part of future settlements.

The announcement comes as both the CFTC and SEC continue to review enforcement actions initiated under the Biden administration, with the CFTC recently seeking to vacate its $5 million settlement with crypto exchange Gemini, a move former agency chairman Tim Massad described as “extraordinarily unusual.”