CFTC Rescinds Policy Regarding Denials of Settlements in Enforcement Actions

What Changed

• - The CFTC has rescinded the policy in Appendix A to Part 10 that prevented the Commission from accepting settlement offers where a respondent or defendant continued to deny the allegations in a complaint or administrative order.
• The CFTC will now accept settlements even where the settling party publicly denies or continues to deny the CFTC’s allegations, provided other settlement terms are satisfied.
• The CFTC has stated that it will not enforce existing no-deny (neither‑admit‑nor‑deny) provisions in settlements that have already been entered.
• If a settling party breaches an existing no-deny provision, the CFTC will not allege breach of contract, seek to reopen the matter, ask a district court to vacate the settlement, or reopen an administrative adjudicatory proceeding solely on that basi
• The rescission does not alter the CFTC’s discretion to: - settle with defendants who decline to admit facts or liability; or - negotiate and require admissions of facts or liability in appropriate cases as part of a settlement.
• The CFTC has repealed Appendix A to Part 10 as a regulatory provision, removing the formal policy from its rules governing administrative and civil proceedings.

Suggested Considerations

• Review all existing CFTC settlement orders, consent orders, and related agreements to identify any no‑deny or neither‑admit‑nor‑deny clauses and update internal records to reflect that the CFTC has stated it will not enforce those provisions.
• Update internal enforcement and litigation playbooks to incorporate the new settlement flexibility, including explicit guidance that public denials post‑settlement may be possible but should be subject to legal and reputational risk review.
• Revise board- and senior‑management reporting on CFTC enforcement risks and settlement strategy to reflect the rescission of the no‑deny policy and the availability of settlements without waiving the ability to contest allegations in public communications.
• Implement or update communications and investor‑relations protocols governing post‑settlement statements, ensuring any public denials or clarifications are coordinated with legal, compliance, and, where relevant, parallel regulators or criminal authorities.
• For ongoing CFTC investigations or settlement negotiations, instruct external and internal counsel to reassess settlement strategy, including whether to seek terms that preserve the firm’s ability to deny or contest aspects of the CFTC’s allegations after settlement.
• Update training materials for compliance, legal, and senior business leaders on enforcement risk to explain the change in CFTC policy, how it interacts with SEC and other agency practices, and the implications for public statements following regulatory settlements.

Key Dates

Who is Affected