United States CFTC Ends Enforcement Settlement Rule of Not Allowing Defendant or Respondent to Deny Allegations in Complaint or Administrative Order after Settlement, New Rule Now Allows Public Denial of Allegations after Settlement
5th June 2026 | Hong Kong
The United States Commodity Futures Trading Commission (CTFC) has ended the enforcement settlement rule of not allowing defendant or respondent to deny allegations in complaint or administrative order after settlement. The new rule now allows public denial of allegations after settlement. Announcement (3/6/26): “The Commodity Futures Trading Commission today rescinded a policy, codified in Appendix A to Part 10, stating that the Commission will not accept settlement offers where the defendant continues to deny the allegations in the complaint or administrative order. Rescinding this policy aligns the Commission with the overwhelming majority of federal agencies and gives the Commission more flexibility in settling enforcement actions, which conserves resources, provides certainty, and potentially expedites the return of money to injured investors. The rescission recognizes that the effect on the public interest from such denials may be minimal and that the policy itself may have created an incorrect impression that the Commission is trying to shield itself from criticism. In light of the recission of the no-deny policy, the Commission will not enforce existing no-deny provisions that have already been entered. Today’s rescission does not affect the Commission’s discretion to settle with defendants who decline to admit facts or liability or its discretion to negotiate for admissions as part of a settlement.” CFTC Chairman Michael S. Selig: “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. Today’s action harmonizes the Commission’s settlement approach with those taken by other agencies and ensures fairer resolutions in enforcement matters,” Director of the Division of Enforcement David Miller.” In 2026 May, the United States Securities and Exchange Commission (SEC) ended the enforcement settlement rule of not allowing defendant or respondent to deny allegations in complaint or administrative order after settlement. The new rule now allows public denial of allegations after settlement.
“ United States CFTC Ends Enforcement Settlement Rule of Not Allowing Defendant or Respondent to Deny Allegations in Complaint or Administrative Order after Settlement, New Rule Now Allows Public Denial of Allegations after Settlement “
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United States SEC Ends Enforcement Settlement Rule of Not Allowing Defendant or Respondent to Deny Allegations in Complaint or Administrative Order after Settlement, New Rule Now Allows Public Denial of Allegations after Settlement
20th May – United States Securities and Exchange Commission (SEC) has ended the enforcement settlement rule of not allowing defendant or respondent to deny allegations in complaint or administrative order after settlement. The new rule now allows public denial of allegations after settlement. Announcement (18/5/26): “The Securities and Exchange Commission today rescinded a policy, codified in Rule 202.5(e) of its informal rules of procedures, stating that when it chooses to settle an enforcement action in which a sanction is imposed, it will not settle unless the defendant or respondent also agrees not to publicly deny the allegations in the complaint or administrative order. Rescinding Rule 202.5(e) aligns the Commission with the overwhelming majority of federal agencies that do not have a similar rule and gives the Commission more flexibility in settling enforcement actions, which conserves resources, provides certainty, and potentially expedites the return of money to injured investors. The recission recognizes that the effect on the public interest from such denials may be minimal and that the policy itself may have created an incorrect impression that the Commission is trying to shield itself from criticism. There is no known instance of the Commission seeking to reopen an administrative or civil proceeding as a consequence of a defendant or respondent violating a no-deny provision to which they have consented. In light of the recission of Rule 202.5(e), the Commission will not enforce existing no-deny provisions that have already been entered. In the event of a breach of an existing no-deny provision, the Commission will take no action to ask a district court to vacate a settlement (or to reopen an adjudicatory proceeding) in connection with the terms of the settlement agreement. The Commission generally does not require settling defendants to admit to allegations. Today’s recission does not affect the Commission’s practice related to admissions in settlements and does not affect the Commission’s discretion to settle with defendants who decline to admit facts or liability or its discretion to negotiate for admissions as part of a settlement.” SEC Chairman Paul S. Atkins: “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. Speech critical of the government is an important part of the American tradition. This recission ends the policy prohibiting such criticism by settling “defendants.”
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