The Commodity Futures Trading Commission (CFTC) has made a significant policy change, allowing greater flexibility in enforcement settlements. This decision, announced on June 4, 2026, rescinds a long-standing “no-deny” policy that had been in place since 1998, which required defendants to refrain from denying allegations in order to settle cases. CFTC Chairman Mike Selig expressed that the previous policy may have misled the public regarding the Commission’s transparency.
The update follows a similar move by the Securities and Exchange Commission (SEC), which eliminated its own no-deny policy in May. This shift has been welcomed by various crypto companies that had criticized the restrictive nature of the former rule, viewing it as an infringement on their free speech rights. The CFTC, however, noted that while the no-deny provisions will not be enforced going forward, some defendants may still be required to admit specific facts during settlements.
Additionally, the CFTC is attempting to vacate a $5 million settlement with crypto exchange Gemini, with Selig labeling it as “politically targeted.” This move comes amid a broader trend of rolling back enforcement actions against crypto firms that were initiated under the previous administration.