On June 3, the CFTC announced that it rescinded its policy, codified in Appendix A to Part 10 of its rules of practice, under which the CFTC would not accept settlement offers in an administrative or civil proceeding where a respondent or defendant continued to deny the allegations or the findings of fact and conclusions of law. The final rule took effect upon publication in the Federal Register on June 8. The CFTC stated that the policy’s rescission aligns the agency with the majority of federal agencies, including DOJ, that do not have comparable “neither-admit-nor-deny” policies, and noted that the SEC recently rescinded its neither-admit-nor-deny policy (covered by InfoBytes here).

The CFTC also stated that the policy may have created the “incorrect impression” that the agency was trying to shield itself from criticism, that technological changes such as social media made the line between public and private statements less clear, and that the agency was not aware of any instance in which it sought to reopen a federal district court action or administrative adjudication after a violation of a neither-admit-nor-deny provision. The CFTC stated that rescinding the policy gives it more flexibility in settling enforcement actions, which may conserve resources, provide certainty, and speed up the return of money to victims. The CFTC also stated that it will not enforce existing neither-admit-nor-deny provisions in previously entered settlements and will not allege breach of contract, seek to reopen an otherwise settled case, ask a court to vacate a settlement, or seek contempt based on a breach of such a provision.