CFTC: Market Manipulation Prohibition Equally Applies to Insider Trading, Exploiting Material Nonpublic Information Deemed Unlawful

On April 1, David I. Miller, Enforcement Director of the U.S. Commodity Futures Trading Commission (CFTC), outlined five key focus areas for future CFTC enforcement: insider trading, market manipulation, market abuse, retail fraud, and anti-money laundering (AML) and know-your-customer (KYC) violations. Miller clarified that CFTC insider trading rules extend to prediction markets—trading on undisclosed material information is illegal and will be “actively investigated and prosecuted.” On the regulatory front, the CFTC emphasized a shift away from an “enforcement-first” approach to prioritizing core illegal conduct like fraud and manipulation. The agency also plans to launch a new cooperation policy offering leniency—even full immunity—to institutions that voluntarily self-audit, cooperate with enforcement probes, and complete full remediation. Additionally, the CFTC will strengthen collaboration with trading platforms and law enforcement agencies, with a focus on combating energy market manipulation and fraud using emerging technologies such as artificial intelligence (AI).