CFTC drops no-deny settlement policy as Selig criticizes Gemini case

The U.S. derivatives regulator ended its 1998 no-deny settlement policy, aligning with the SEC’s May change and potentially easing enforcement resolutions while Chair Mike Selig criticized prior Gemini enforcement.

22d ago

Fact Check

The CFTC's own press release (9247-26) confirms it rescinded the no-admit/no-deny policy (Appendix A to Part 10). The SEC's press release 2026-45 (May 19, 2026) confirms the SEC's parallel May rescission, supporting the 'aligned with the SEC's May change' claim. CNBC and Cointelegraph confirm Selig publicly described the Gemini/Winklevoss enforcement as politically motivated. The only weakly verified detail is the specific '1998' origin year for the CFTC's policy, which the available sources did not explicitly confirm, but this is a minor qualifier within an otherwise accurate claim.

Summary

CFTC Chair Mike Selig said the U.S. derivatives regulator has ended a 1998 policy that barred settlements when defendants publicly denied the agency’s allegations, a move he said gives the agency more flexibility, could streamline resolutions and reduce litigation, and avoids the impression that the CFTC is insulating itself from criticism. He said the change aligns the CFTC with the SEC, which ended a similar policy in May. Selig also said prior enforcement involving Gemini co-founders Tyler and Cameron Winklevoss was politically motivated, and the source says the CFTC last week asked a federal court to void Gemini’s January 2025 $5 million settlement.

Terms & Concepts

CFTC: The Commodity Futures Trading Commission, the U.S. regulator that oversees derivatives markets and has a role in some crypto market oversight.
SEC: The U.S. Securities and Exchange Commission, which ended a similar no-deny settlement policy in May.
Gemini: A cryptocurrency exchange and digital asset company founded by Tyler and Cameron Winklevoss.