CFTC scraps no-deny policy, allows settlements amid denials

The commodities regulator drops a 28-year-old rule requiring defendants to stay silent about allegations when settling enforcement cases.

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Add us on Google by Editorial Team Jun. 4, 2026

For nearly three decades, if you settled an enforcement case with the Commodity Futures Trading Commission, the deal came with an unwritten gag order: you couldn’t publicly deny the allegations. That era is over.

The CFTC announced on June 3 that it has rescinded its longstanding “neither-admit-nor-deny” settlement policy, formally repealing Appendix A to Part 10 of its rules. The change means companies and individuals can now settle enforcement actions while simultaneously telling the world they did nothing wrong.

What changed and why it matters

The old policy, in place since 1998, worked like this: when a defendant agreed to settle with the CFTC, they couldn’t publicly admit or deny the agency’s allegations. The policy existed to encourage settlements. If defendants could deny everything publicly, the thinking went, it would undermine the deterrent effect of enforcement actions.

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CFTC Chairman Michael S. Selig framed the change as aligning the agency with broader government regulatory practices. The SEC rescinded a nearly identical rule on May 18, just two weeks earlier.

One critical detail: the policy change applies retroactively. The CFTC will no longer enforce existing no-deny requirements embedded in prior settlements and will not vacate or reopen cases over these provisions.

The crypto angle

The CFTC’s enforcement footprint in digital assets has grown considerably in recent years. The agency oversees derivatives and related activities, which puts a significant slice of the crypto market under its jurisdiction.

Uniswap Labs settled with the CFTC for $175,000 in 2024. Gemini paid $5 million in early 2025 to resolve its own enforcement action. Under the old regime, neither company could publicly deny the CFTC’s allegations without risking the settlement. Under the new rules, future defendants in similar positions could write the check and simultaneously publish a blog post explaining why the charges were meritless.

What this means for investors

First, expect more settlements. The old policy created a friction point that sometimes pushed defendants toward litigation instead of resolution. Removing that friction should accelerate case closures, which the CFTC has explicitly cited as a resource conservation benefit.

Third, the alignment between the CFTC and SEC on this policy creates a more uniform regulatory environment. For digital asset firms that interact with both agencies, having consistent settlement mechanics reduces compliance complexity.

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