The U.S. Commodity Futures Trading Commission has rescinded its long-running “no-deny” policy for enforcement settlements.
Summary
- CFTC ended its 1998 no-deny policy, giving defendants more room to dispute enforcement allegations publicly.
- The move follows the SEC’s May reversal and extends a wider reset in crypto enforcement.
- Gemini’s $5 million case adds fresh context as the CFTC reviews older crypto actions now.
The rule, adopted in 1998, blocked the agency from accepting settlement offers when a defendant continued to deny allegations in a complaint or administrative order.
The CFTC said the old policy may have created the view that the agency wanted to “shield itself from criticism.” Chairman Michael Selig said the Commission had used the rule for nearly three decades and was now moving “consistent with regulators throughout the government.”
SEC move set the recent precedent
The decision follows a similar shift at the U.S. Securities and Exchange Commission. The SEC removed its own no-deny settlement rule in May, ending a policy first adopted in 1972 that limited public denials after enforcement settlements.
According to recent crypto.news reporting, SEC Chair Paul Atkins said that change ended a restriction on criticism of the agency. SEC Commissioner Hester Peirce also argued that allowing both sides to speak openly would support clearer enforcement records.
Crypto cases add fresh context
The CFTC decision comes as U.S. market regulators review parts of their crypto enforcement approach. Crypto firms have long criticized no-deny language, arguing that settlement terms forced companies to stay silent even when they disagreed with agency claims.
The timing also follows renewed attention on Gemini. The exchange agreed in January 2025 to pay $5 million to settle CFTC charges tied to alleged misleading statements linked to a Bitcoin futures product. As crypto.news reported at the time, Gemini settled without admitting or denying the allegations.
Gemini case remains part of the broader debate
The CFTC has since asked a federal judge to vacate the prior order against Gemini. Reuters reported that Gemini agreed not to seek a refund of the $5 million penalty, while the agency now says the false-statement case should not have been brought.
Selig has also described the Gemini case as “politically targeted,” according to recent reports. Meanwhile, the CFTC said it will not enforce existing no-deny provisions in prior settlements. The agency also said the new approach does not remove its discretion to seek admissions of facts or liability in future enforcement deals.
That means defendants may gain more room to settle without giving up public denials. At the same time, the CFTC can still pursue enforcement actions, seek penalties, and negotiate admissions where the facts or public record require them.
For crypto companies, the change may affect how future CFTC settlements are drafted. It does not erase past investigations or rewrite commodity law, but it changes the speech terms attached to many enforcement resolutions.
