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The CFTC Just Dropped Its 'No-Deny' Settlement Policy — Here's What That Means for Crypto

(120 days ago) · 1 source · Summarized by CryptoBipto

The Commodity Futures Trading Commission (CFTC) has followed the SEC's lead in eliminating its longstanding 'no-deny' policy for settlements. Under the old rule, companies settling with regulators were prohibited from publicly denying the allegations against them. Now, both major financial regulators allow settling parties to dispute the charges even after reaching an agreement.

WHY IT MATTERS

Imagine you get into a dispute with your school and agree to accept a punishment just to move on — but the school also says you're not allowed to tell anyone you think you were innocent. That's essentially what the old 'no-deny' policy did. When companies settled with regulators like the CFTC, they paid a fine but were forbidden from publicly saying 'we didn't do anything wrong.' Now that rule is gone. For crypto companies, this is a big deal because many have faced enforcement actions and felt forced to stay silent. This change could make the relationship between crypto businesses and regulators less adversarial and encourage more settlements, since companies no longer have to sacrifice their public reputation to resolve disputes.

For years, both the SEC and CFTC enforced a 'neither admit nor deny' framework in settlements. This meant that when a company or individual settled enforcement actions, they couldn't publicly deny the allegations — even if they believed they did nothing wrong.

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