CFTC NEWS AND SPEECHES—Acting Chairman Pham unveils major collateral and enforcement reforms - 05 December 2025

Pham announced initiatives to unlock over $22 billion in customer collateral and overhaul the CFTC’s enforcement and Wells processes to enhance fairness, transparency, and market competitiveness.

Acting Chairman Caroline Pham announced significant CFTC actions aimed at enhancing U.S. market competitiveness and strengthening due process in enforcement. The first initiative clarifies when futures commission merchants may post customer-owned securities with foreign brokers under Part 30, a move Pham says will “unlock over $22 billion dollars of collateral” for redeployment. The second initiative amends the agency’s Rules of Practice and Rules Relating to Investigations to improve transparency, ensure fair notice, and reform the Wells process. Together, the actions reflect Pham’s broader theme that U.S. market participants should not be disadvantaged globally and that enforcement must be anchored in “fairness … and due process.”

In announcing the Part 30 interpretation, Pham emphasized the Administration’s focus on reducing unnecessary regulatory burdens and supporting U.S. firms operating globally. Pham stated that “American businesses should be able to hedge their risks overseas without being penalized,” and described the interpretation as addressing “longstanding issues that disadvantaged U.S. customers that access foreign futures markets.” By providing legal certainty on Regulation 30.7 and the use of customer-owned securities for margining foreign positions, the CFTC aims to reduce costs for market participants and mitigate competitive disadvantages faced by FCMs abroad.

Next, Pham turned to enforcement reforms, characterizing the CFTC’s authority as “nearly boundless” and underscoring the importance of integrity and accountability in its use. Pham explained that the amendments to the Rules of Practice and Rules Relating to Investigations are designed to “ensure an accurate and complete administrative record,” eliminate “secret charges,” and provide meaningful Wells notices supported by relevant facts. The reforms also extend the minimum time to respond to a Wells notice from as little as two days to at least 30 days, a change Pham described as essential to fairness and the rule of law.

Pham concluded by stressing that these reforms are intended to “end lawfare so that all are treated fairly with respect for basic rights in CFTC enforcement actions.” The amendments, ranging from clarifying adjudicatory procedures to standardizing enforcement recommendation memoranda, seek to ensure that the Commission acts as a neutral arbiter of law and respects constitutional principles. The revised rules will take effect upon publication in the Federal Register.

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