The US CFTC Cancels the "No-Action" and Settlement Provisions to Align with SEC Regulatory Reform

On June 4, the U.S. Commodity Futures Trading Commission (CFTC) announced the repeal of its "No-Deny" policy, a rule that had been in place since 1998. The policy barred parties from publicly disputing charges brought by the agency when settling CFTC matters. The CFTC cited that the policy had fostered the external perception that the regulator was seeking to avoid criticism as the reason for scrapping it. CFTC Chairman Mike Selig added that the repeal will grant the commission greater flexibility in its enforcement and settlement processes, while aligning its practices with those of other U.S. regulatory agencies. The CFTC clarified that its new policy does not mean all cases will no longer require admissions of guilt. In certain enforcement and settlement matters, the agency may still require respondents to acknowledge specific facts or legal responsibilities. Additionally, against the backdrop of the Trump administration’s broader push for regulatory reform, the CFTC and Securities and Exchange Commission (SEC) have been rolling back or adjusting multiple enforcement actions targeting the crypto industry that were initiated during the Biden administration.