ENFORCEMENT—CFTC rescinds policy regarding denials of settlements in enforcement actions - 08 June 2026

The action harmonizes CFTC rules with those of the SEC, which changed its no-admit/no-deny settlement policy last month.

The CFTC has rescinded a long-standing policy commonly understood to limit a respondent’s or defendant’s ability to deny allegations following the acceptance of settlements in administrative and civil proceedings (Rescission of Policy Relating to the Acceptance of Settlements in Administrative and Civil Proceedings, 17 CFR Part 10, Appendix A).

Since 1998, the Commission has maintained a policy, codified in Appendix A to Part 10 of its rules of practice for adjudicatory proceedings, that the Commission will not accept settlement offers where the respondent or defendant continues to deny the allegations, or the findings of fact and conclusions of law.

Will not enforce existing provisions. Considering the recission of the no-deny policy, the Commission said it will not enforce existing no-deny provisions that have already been entered.

The rescission does not affect the Commission’s discretion to settle with defendants who decline to admit facts or liability or its discretion to negotiate for admissions as part of a settlement.

In addition, rescinding the no-deny policy gives the Commission more flexibility in settling enforcement actions and potentially expedites the return of money to injured investors, the agency said.

The CFTC’s action follows that of the SEC, which, as previously reported in Securities Regulation Daily, rescinded a rule of informal procedure that concerns settlements in judicial or administrative proceedings–its no-admit/no-deny settlement policy.

The CFTC’s rule change will be effective as of its publication date in the Federal Register.