CFTC Ends 28-Year No-Deny Policy in Enforcement Settlements

• US regulator allows settling defendants to publicly deny allegations for first time since 1998
• Policy reversal follows SEC change and addresses industry free speech concerns

On June 4, 2026 (UTC), Law.com reported that the US Commodity Futures Trading Commission (CFTC) officially ended its 28-year "no-deny" settlement policy, aligning its approach with the Securities and Exchange Commission (SEC). The policy shift allows settling defendants to publicly deny allegations in enforcement actions for the first time since 1998.

The CFTC stated that dropping the "no-deny" policy will give the agency more flexibility in resolving enforcement cases, and directly addresses repeated free speech concerns raised by crypto companies. The new approach removes any impression that the regulator seeks to limit criticism or shield itself from public scrutiny.

Current settlement agreements will not enforce existing "no-deny" provisions. Looking ahead, the CFTC said some defendants could be required to admit certain facts or liabilities in future deals, depending on the specifics of the case. This move reflects a broader trend under the Trump administration to revisit enforcement actions spearheaded during the previous Biden administration.

CFTC Chairman Michael Selig told Law.com that the agency's recent enforcement action against Gemini had been "politically targeted," and said the CFTC is actively seeking to vacate a $5 million settlement with the major crypto exchange. Former Chair Tim Massad described the reversal as “extraordinarily unusual,” emphasizing the evolving regulatory climate.

As of June 2026, the CFTC and SEC now maintain similar enforcement settlement practices, offering settling defendants the ability to publicly deny regulatory allegations and increasing flexibility in case resolutions.