U.S. CFTC Eliminates 'No-Deny' Settlement Clause, Aligns with SEC Regulatory Reform

KuCoinFlash

Release Time: 06/04/2026 03:14:21

Summary

On June 4, 2026, the U.S. Commodity Futures Trading Commission (CFTC) announced the repeal of its "No-Deny" policy, which had been in effect since 1998. The regulatory change removes restrictions preventing defendants from denying allegations in settlement agreements. CFTC Chair Mike Selig stated that the shift provides greater flexibility and aligns with the practices of other U.S. regulators. This move follows reforms initiated under the Trump administration, during which the CFTC and SEC revised enforcement actions involving the crypto sector. The CFT (Countering the Financing of Terrorism) provisions remain unaffected. The CFTC still retains the authority to require admissions of liability in specific cases.

BlockBeats report, June 4: The U.S. Commodity Futures Trading Commission (CFTC) announced the elimination of its "No-Deny" policy, in effect since 1998. The policy required defendants settling with the CFTC to refrain from publicly denying the allegations raised by the regulator. The CFTC stated that the policy may have created a misleading impression that the regulator was attempting to avoid criticism, and therefore decided to rescind it. CFTC Chair Mike Selig said that removing the policy will provide the commission with greater flexibility in enforcement settlements and align it with other U.S. regulators.

However, the CFTC stated that the new policy does not mean all cases will be resolved without admission of responsibility. In certain enforcement settlements, regulators may still require defendants to admit to specific facts or legal liabilities. Additionally, against the backdrop of regulatory reforms championed by the Trump administration, both the CFTC and the SEC have revoked or modified several enforcement actions initiated during the Biden administration targeting the cryptocurrency industry.

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