The U.S. Commodity Futures Trading Commission (CFTC) announced on June 4 that it will abolish the “No-Deny” policy, which had been in effect since 1998. The policy previously required defendants, when reaching enforcement settlements with the CFTC, not to publicly deny the regulator’s allegations. In its statement, the CFTC said the policy “may create the mistaken impression that the Commission is trying to protect itself from criticism,” and therefore decided to cancel it.
New policy framework after the repeal: confirmed CFTC official boundaries
According to the CFTC’s official statement, after the repeal of the no-deny policy, the following provisions remain clearly applicable: the CFTC will not enforce existing no-deny provisions, but in some enforcement settlements, the CFTC may still require defendants to acknowledge certain facts or legal responsibility. Selig said: “Over the past thirty years, the Commission has refused to settle unless the defendant agrees not to publicly deny the Commission’s allegations. I’m glad we’re rescinding this no-deny policy, which is consistent with how other government regulators operate.”
Cryptocurrency companies that had previously been penalized for violating CFTC or SEC rules had previously publicly criticized that the no-deny provision limited their right to freedom of speech.
Background on regulatory reform: CFTC rescinds the Gemini settlement and adjusts Biden-era enforcement actions
Against the backdrop of regulatory reform pushed by the Trump administration, the CFTC and SEC have already withdrawn or adjusted various enforcement actions launched during the Biden administration targeting the crypto industry. On Thursday, the CFTC asked the court to vacate a $5 million settlement agreement it reached with the crypto exchange Gemini. Selig called the case an “enforcement action for political purposes.” Tim Massad, who served as CFTC chairman during the Obama administration, told Cointelegraph on Friday that the CFTC’s decision to rescind an already reached settlement agreement was an “extremely unusual” move.
FAQ
What substantive changes have occurred to CFTC enforcement settlement procedures after the repeal of the no-deny policy?
According to the CFTC’s official statement, the core change after the repeal is that defendants, when settling with the CFTC, are no longer required to agree not to publicly deny allegations. But the CFTC also confirmed that this does not mean all settlement cases are exempt from acknowledging liability—the regulator still has the power to require defendants to acknowledge facts or legal responsibility in specific cases.
How does the CFTC’s repeal of the no-deny policy compare with the SEC’s reform in May?
In its official statement, the CFTC explicitly noted that the wording of the repeal of the no-deny policy is similar to the language used by the SEC when it rescinded a comparable policy in May 2026. The reform directions of the two agencies are aligned: both removed the clause requiring defendants to agree not to publicly deny allegations in settlements, while both retained flexibility to require acknowledgment of responsibility in specific cases.
What specific impact does the CFTC no-deny policy have on crypto companies?
Crypto companies that have been penalized by the CFTC or SEC criticized that the no-deny policy limits their freedom of speech to publicly express positions—even if they do not agree with the regulator’s allegations, they still cannot publicly object after a settlement. After the repeal, defendants can generally publicly deny related allegations at the time of settlement, but whether they can do so in practice still depends on the specific settlement terms set by the CFTC in each case.
