CFTC Ends 26-Year No-Denial Ban, Crypto Firms Get More Leeway

The U.S. CFTC has ended its 1998 “no-denial” policy for enforcement settlements, letting defendants publicly dispute CFTC allegations after reaching a deal. CFTC Chair Mike Selig said the prior no-denial approach could imply the agency wanted to “shield itself from criticism,” and removing it gives the CFTC more settlement flexibility. The CFTC also says it will not retroactively enforce existing no-denial terms, though it may still require admissions of specific facts or liability on a case-by-case basis. The change aligns with a similar reversal by the SEC and comes amid broader Washington pushback against some Biden-era enforcement moves. For crypto traders, this CFTC no-denial update is unlikely to alter token fundamentals directly, but it may reduce the perceived legal “risk premium” from future headlines around CFTC enforcement. New related context: the CFTC reportedly sought to annul its $5 million settlement with Gemini, alleging political targeting. Former CFTC chair Tim Massad called undoing a major settlement highly unusual. Together, these signals suggest settlement terms—and the market reaction to them—could become more predictable, especially if future CFTC deals avoid broad no-denial language.