CFTC follows SEC in scrapping ‘no-deny’ policy for settlements
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CFTC Chairman Mike Selig says the rescission of its “no-deny” policy means it now has more flexibility when settling enforcement actions.
Key facts
On Thursday, the CFTC sought to vacate its $5 million settlement with crypto exchange Gemini, a case that Selig claimed was “politically targeted
CFTC Chairman Mike Selig says the rescission of its “no-deny” policy means it now has more flexibility when settling enforcement actions
The CFTC said on Wednesday that it scrapped the policy, first adopted in 1998, because it “may have created an incorrect impression that the Commission is trying to shield itself from criticism
The language was similar to that provided by the US Securities and Exchange Commission when it rescinded a similar policy
Summary
The US Commodity Futures Trading Commission has rescinded a long-standing policy that prevented it from accepting a lawsuit settlement if the defendant denied the agency’s allegations. The CFTC said on Wednesday that it scrapped the policy, first adopted in 1998, because it “may have created an incorrect impression that the Commission is trying to shield itself from criticism.” The language was similar to that provided by the US Securities and Exchange Commission when it rescinded a similar policy in May. “For nearly three decades, the Commission has refused to settle cases unless the defendant promised not to publicly deny the Commission’s allegations,” CFTC Chairman Mike Selig said.