The U.S. Commodity Futures Trading Commission (CFTC) has dropped a long-standing rule that prevented companies and individuals from publicly disputing allegations after settling enforcement cases. The change ends a policy that had been in place since 1998 and brings the agency in line with most other federal regulators.
Under the previous rule, defendants could settle with the CFTC but could not publicly deny the allegations tied to their cases. The agency said in a June 3 release that removing the restriction could help resolve cases more efficiently and reduce legal disputes that often prolong settlements. Regulators also said faster resolutions could help return money to affected investors sooner.
The move comes as U.S. regulators review how they handle enforcement actions across financial markets, including the cryptocurrency industry. It also follows a similar decision by the U.S. Securities and Exchange Commission last month. Both agencies have argued that settlement agreements should focus on resolving cases rather than restricting what defendants can say publicly after a deal is reached.
Harmonizing federal enforcement standards
The administrative shift formally excises the “no-deny” mandate previously codified in Appendix A to Part 10 of the CFTC’s regulatory framework. Since 1998, the regulatory body had maintained a strict refusal to accept any settlement offer unless the responding party agreed to absolute public silence regarding the validity of the underlying complaints.
Chairman Michael S. Selig welcomed the decision and emphasized the need for consistency across government agencies. “For nearly three decades, the Commission has refused to settle cases unless the defendant promised not to publicly deny the Commission’s allegations. I am pleased that we are rescinding the no-deny policy consistent with regulators throughout the government,” said CFTC Chairman Michael S. Selig.
Crucially, the Enforcement Division announced that the change applies retroactively: the CFTC will explicitly decline to enforce legacy no-deny parameters embedded in older settlements. However, the agency retains its localized discretion to demand formal admissions of fault during future high-severity enforcement negotiations.
“Today’s action ensures fairer resolutions in enforcement matters,” added David Miller, Director of the CFTC’s Division of Enforcement.
Following SEC’s landmark precedent
The CFTC’s policy update is a direct response to a matching administrative rule change executed by the Securities and Exchange Commission (SEC) on May 18, 2026. The SEC abolished its own 54-year-old “gag order” protocol—originally established under Rule 202.5(e) in 1972.
SEC Chairman Paul S. Atkins pushed the rule change through as part of a sweeping internal effort to realign the financial watchdog with constitutional protections. “For more than 50 years, the Commission has conditioned settlement on a defendant’s promise not to publicly deny the Commission’s allegations. I am pleased that we are rescinding the no-deny policy today,” Atkins said. “This rescission ends the policy prohibiting such criticism by settling defendants.”
The rollback of these settlement rules coincides with a broader institutional restructuring. The SEC recently unveiled its 2026–2030 strategic plan. The document places digital assets, blockchain technology, and tokenized finance among the agency’s major regulatory priorities. Furthermore, the SEC said blockchain and crypto technologies could transform the nation’s financial infrastructure.
A broader crypto enforcement review
The policy shift arrives amid broader scrutiny of cryptocurrency enforcement actions. Crypto firms have long argued that no-deny settlement terms forced companies to remain silent despite disagreements with regulatory claims.
Consequently, attention has returned to Gemini, the cryptocurrency exchange founded by the Winklevoss twins. Gemini agreed in January 2025 to pay $5 million to settle CFTC allegations involving statements linked to a Bitcoin futures product. The company settled without admitting or denying wrongdoing.
However, the CFTC has since asked a federal judge to vacate the order. Reuters reported that Gemini agreed not to seek a refund of the penalty. Meanwhile, the agency now believes the case should not have moved forward.
Selig addressed the matter during CNBC’s Squawk Box. He argued that regulators unfairly targeted crypto firms under the previous administration. “The Biden administration weaponized the federal agencies against the crypto industry and many other industries,” he said.
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