On March 31, 2026, the NYU Legislation Program on Company Compliance and Enforcement (PCCE) hosted David Miller, the Director of Enforcement of the Commodity Futures Buying and selling Fee (CFTC), to ship remarks on the CFTC’s enforcement priorities, insider buying and selling within the prediction markets, and self-disclosure and cooperation with the CFTC. Following his remarks, Director Miller engaged in a hearth chat with Joseph Facciponti, PCCE’s Govt Director. On this publish, specialists and former CFTC officers current reactions to Director Miller’s speech.
©Goldberg: Courtesy of NYU Photograph Bureau
Photograph courtesy of writer
A lot of the dialogue with the CFTC prior to now yr has centered upon its jurisdiction over crypto and prediction markets, so the inclusion of market manipulation particularly within the vitality markets as one of many Division of Enforcement’s priorities is especially notable. Latest studies of anomalous buying and selling exercise within the crude oil and pure gasoline markets in gentle of the battle in Iran have sparked hypothesis of potential insider buying and selling and market manipulation. These media studies replicate the elevated affect of prediction markets and the info that these platforms present within the vitality sector. It has turn into clear that buying and selling within the vitality markets has expanded past futures buying and selling on the normal exchanges to buying and selling occasion contracts tied to the oil and pure gasoline on prediction markets, and due to this fact it isn’t stunning that vitality market manipulation is an enforcement precedence alongside insider buying and selling within the prediction markets.
The CFTC’s Division of Enforcement is not any stranger to bringing circumstances regarding manipulative exercise on conventional exchanges and for misappropriation of fabric personal data within the vitality markets. Nevertheless, prediction markets have rapidly turn into a further instrument for merchants and the info feeds from these prediction markets have been reported to have an elevated affect on oil pricing. Whereas it’s the CFTC’s expectation that the exchanges, together with registered prediction markets, will function the primary line of protection in opposition to abusive buying and selling exercise, how that protection holds with the nascent prediction markets with respect to the vitality markets has but to be seen.
Within the interim, along with taking steps to keep away from manipulative buying and selling exercise and insider buying and selling exercise on conventional exchanges throughout this era of volatility within the vitality sector, companies ought to develop the scope of such efforts to embody buying and selling on prediction markets. Inside controls, in addition to compliance insurance policies and procedures, needs to be revised to deal with buying and selling on prediction markets, documentation of how buying and selling choices are made, and the retention and recordkeeping of any communications made by workers on the prediction market platforms themselves. Moreover, present guidelines and codes of conduct needs to be up to date to ban the misuse of confidential materials nonpublic data when buying and selling on prediction markets and companies ought to think about the enlargement of the scope of who these guidelines ought to apply to. Surveillance efforts ought to monitor buying and selling exercise, in addition to any associated communications, regarding vitality markets throughout conventional exchanges in addition to on prediction markets itemizing energy-related occasion contracts. Because the CFTC’s Division of Enforcement has made market manipulation within the vitality markets an enforcement precedence, companies must hold abreast of market improvements resembling prediction markets that might doubtlessly improve the chance of market manipulation, disruptive buying and selling, and insider buying and selling.
Elizabeth Davis is a Companion at Davis Wright Tremaine LLP.
by Shari Brandt and David Massey
Images courtesy of the authors
In February 2025, then-Performing Chairman Caroline Pham issued the CFTC’s first-ever cooperation “matrix.” Final week, David Miller rescinded that enforcement advisory in favor of a forthcoming new Employees Advisory that guarantees a “clear path to a declination” for events that self report, absolutely cooperate, absolutely remediate, together with by means of ongoing reporting of violative conduct, adjust to tips on remediation and disgorgement, and current no “aggravating circumstances.” A lot will depend upon how these particulars are finally outlined within the Employees Advisory and utilized by means of the primary few declinations which can be publicly introduced. The protection bar shall be watching these take a look at circumstances intently for indicators that the brand new coverage is significant in follow.
A notable change within the new CFTC coverage is that the Division of Enforcement will now award full credit score for a self-report even when the company had beforehand been made conscious of the underlying challenge confidentially. This differs considerably from the DOJ’s new Company Enforcement and Voluntary Self-Disclosure Coverage which treats that situation as a “close to miss” and permits credit score towards a non-prosecution settlement, however not a full declination. Given the CFTC’s disclosure final yr that roughly one-third of its leads and 30% of its open investigations originate from whistleblowers, this new coverage removes a significant aspect of probability that had beforehand sophisticated the choice whether or not to self-report to the CFTC. One other key change is that in assessing whether or not a celebration gives “full” cooperation, the choice going ahead shall be “binary,” and there’ll now not be an evaluation of whether or not cooperation is “passable,” “glorious,” or “exemplary” with corresponding percentages of credit score, as supplied beneath the February 2025 cooperation matrix. It’s unclear whether or not, beneath the brand new coverage, “binary” means there’ll now be an on/off change, whereby a failure to offer requested data or protect a portion of related paperwork at any single level in a prolonged investigation may doubtlessly finish with zero cooperation credit score. Equally, the announcement itself factors out that full cooperation should embody remediation, and that remediation contains, the place applicable, disciplining related workers, together with these liable for the conduct and people with supervisory authority. Underneath this coverage, it’s doable that an organization may find yourself with no cooperation credit score if the Division disagrees with one of many firm’s worker self-discipline choices, regardless that all different standards for declination have been met.
Moreover, though the coverage is supposed to offer a “clear” path towards a declination, it is probably not apparent prematurely of creating a report whether or not the “aggravating circumstances” exception will foreclose that consequence. In his speech, Miller stated that sure circumstances could preclude eligibility (e.g., pervasive intentional or reckless conduct by possession or senior-most administration, in addition to recidivist exercise involving intentional or reckless conduct), after which added, “however not essentially so.” It stays to be seen how the coverage shall be utilized in follow as soon as the formal Employees Advisory is issued.
Shari Brandt and David Massey are Companions at Perkins Coie LLP.
by Charu A. Chandrasekhar and Daniel M. Gitner
Images courtesy of the authors
On March 31, 2026, CFTC Enforcement Director David Miller signaled in his first public remarks as director that insider buying and selling within the prediction markets is the CFTC’s Division of Enforcement’s high precedence. Miller declared that “[i]nsider buying and selling within the prediction markets—the place there may be misappropriated data—is exactly the type of critical violation that we’re going after vigorously.” Whereas acknowledging that prediction markets are inherently “price-discovery markets,” and “[m]arket individuals are entitled to make use of their very own information and data to make buying and selling choices,” he cautioned that the Division of Enforcement “[w]in poor health aggressively detect, examine, and, the place applicable, prosecute insider buying and selling within the prediction markets.”
Director Miller’s assertion follows the CFTC’s latest unequivocal assertion of jurisdiction over buying and selling in prediction markets and steadily mounting scrutiny into potential misuse of MNPI on prediction markets. First, in February 2026, CFTC Chairman Michael Selig confirmed the company’s view that these occasion contracts are in truth swaps, subjecting transactions in these devices to the CFTC’s jurisdiction and broad antifraud and antimanipulation authority beneath CFTC Rule 180.1. Second, the CFTC’s Division of Market Oversight thereafter issued an advisory to prediction market platforms, referred to as Designated Contract Markets (“DCMs”), outlining the employees’s views on regulatory necessities for the itemizing and buying and selling of occasion contracts. The CFTC additionally issued two enforcement advisories addressing prediction markets buying and selling; withdrew guidelines initially proposed in 2024 regarding occasion contracts and a 2025 employees advisory addressing sports activities occasion contracts; and thereafter issued an Advance Discover of Proposed Rulemaking looking for public remark concerning occasion contract derivatives traded on prediction markets.
Given the CFTC’s declared intent to research and prosecute insider buying and selling in prediction markets, asset managers, broker-dealers, and public firms ought to now think about implementing or revising insurance policies and procedures to particularly deal with the misuse of MNPI in reference to prediction markets buying and selling. The misuse of fabric nonpublic data in prediction markets buying and selling presents a rising compliance danger for asset managers, broker-dealers, and public firms, notably as a result of occasion contract accounts could fall exterior conventional private buying and selling surveillance techniques designed for securities accounts. To handle this hole, companies ought to think about increasing present MNPI, insider buying and selling, and code of conduct insurance policies past securities buying and selling to cowl prediction markets and different occasion contracts expressly, with firmwide software the place applicable. Revised insurance policies ought to outline key phrases resembling “prediction markets” and “occasion contracts,” set up a controls framework for private account disclosure, monitoring, pre-clearance, or potential prohibitions, and clearly prohibit buying and selling on or tipping MNPI whatever the market or instrument used. Public firms must also assess whether or not blackout durations, pre-clearance necessities, or heightened restrictions ought to apply to workers with entry to delicate data that might have an effect on occasion markets, whereas asset managers and broker-dealers utilizing prediction market knowledge in buying and selling methods could want to strengthen documentation of buying and selling choices. Extra broadly, companies ought to reevaluate insurance policies governing different non-securities contracts regulated by the CFTC and replace worker coaching and certification applications to replicate these rising dangers.
Charu A. Chandrasekhar and Daniel M. Gitner are Companions at Debevoise & Plimpton LLP.
by Parvin Moyne and Jack Murphy
Images courtesy of authors
Miller’s announcement of a brand new forthcoming employees advisory on cooperation is the seventh advisory on the subject since 2017 and underscores the problem of arriving at a sturdy cooperation framework. The speedy succession of advisories means that the Division of Enforcement continues to recalibrate its method in response to market suggestions, enforcement expertise, and inner priorities. However it additionally raises questions on whether or not the brand new coverage will deliver lasting stability or stay topic to additional revision.
Most lately, in February 2025, the CFTC issued a cooperation advisory containing an in depth, tiered framework for self‑reporting and cooperation, full with particularly enumerated penalty reductions and a matrix‑primarily based method. Miller’s previewed coverage would signify a pointy departure from the prior coverage, abandoning granular matrixes in favor of a simplified binary method. As well as, in contrast to the February 2025 steering, which allowed for a declination solely in “extraordinary circumstances,” the brand new coverage would offer a transparent path to declination for firms that self‑report, cooperate absolutely, and remediate absolutely, absent aggravating circumstances. Whereas a transparent path to declination shall be welcome information to individuals beneath CFTC investigation, the Division’s repeated revisions to its cooperation steering may additionally create hesitation amongst firms and people contemplating whether or not to self‑report or cooperate. Market individuals could moderately query whether or not cooperation undertaken right this moment will proceed to be credited a yr from now beneath the identical commonplace.
The proposed cooperation framework additionally raises vital questions for the CFTC’s whistleblower program, which is designed to incentivize people to report potential violations by providing financial awards and anti‑retaliation protections. If firms can obtain cooperation credit score—and doubtlessly declinations—even when the Fee has already realized of misconduct from a confidential supply, the relative leverage of whistleblower ideas in enforcement outcomes could also be diminished. On the similar time, the whistleblower program stays a vital pipeline for prime‑high quality data, notably the place companies don’t self‑report or the place inner compliance mechanisms fail. It stays to be seen whether or not enhanced cooperation incentives may dampen whistleblower participation, and whether or not the forthcoming steering will deal with points particular to the whistleblower program.
Parvin Moyne is a Companion and Jack Murphy is a Senior Counsel at Akin Gump Strauss Hauer & Feld LLP.
Images courtesy of the authors
by Douglas Okay. Yatter and Catherine Younger
On March 31, 2026, David I. Miller, the newly appointed Director of Enforcement on the Commodity Futures Buying and selling Fee (CFTC or the Fee), delivered remarks at NYU College of Legislation outlining the Division of Enforcement’s priorities beneath CFTC Chairman Michael Selig’s management.
The CFTC’s 5 areas of focus advance the administration’s “again to fundamentals” method to enforcement by emphasizing market integrity and fraud offenses. On the similar time, their breadth portends elevated enforcement exercise, together with in revolutionary areas like prediction markets. When investigations contain novel merchandise and nascent markets, ending “regulation by enforcement” requires that enforcement actions comply with, fairly than change, clear regulatory steering. It stays to be seen how the company will method enforcement in these core areas if and after they implicate novel regulatory points.
Furthermore, whereas emphasizing these 5 areas, Director Miller didn’t preclude different forms of circumstances. Certainly, he said: “There may be one factor I want to point out about different areas of enforcement I’ve not mentioned right this moment. Even inside these areas, together with compliance, if we have now somebody who repeatedly violates the CEA and our guidelines, and/or does so willfully, we aren’t going to take a seat idly by — we’re going to do one thing about it.” What different forms of circumstances the company could deliver, and in what circumstances, stay open questions.
The breadth of the CFTC’s enforcement program additionally highlights that the company has a substantial amount of floor to cowl with restricted assets. Director Miller famous that the Division of Enforcement shall be hiring further employees to assist deal with its precedence areas. He additionally burdened that exchanges carry out surveillance and compliance capabilities that “are a vital line of protection,” and he underlined the CFTC’s partnership with the SEC, self-regulatory organizations, state regulators, and the Division of Justice, in addition to its new MOU with Main League Baseball. The business shall be eager to see how the CFTC marshals these numerous assets, and when it chooses to deliver circumstances or defers to different authorities to take action.
Lastly, by offering a clearer path to declinations, the CFTC’s forthcoming coverage replace on self-reporting and cooperation could incentivize extra frequent studies of potential misconduct. Whether or not it does so will depend upon the coverage’s contours and the way the company acknowledges self-reporting and cooperation in its enforcement choices. As all the time, an organization that turns into conscious of potential wrongdoing however doesn’t but have all of the info could must navigate a fancy set of things in figuring out how one can proceed.
Douglas Okay. Yatter is a Companion and Catherine Younger is an Affiliate at Latham & Watkins LLP. Latham affiliate John Federico contributed to this text.
The views, opinions and positions expressed inside all posts are these of the writer(s) alone and don’t signify these of the Program on Company Compliance and Enforcement (PCCE) or of the New York College College of Legislation. PCCE makes no representations as to the accuracy, completeness and validity or any statements made on this web site and won’t be liable any errors, omissions or representations. The copyright of this content material belongs to the writer(s) and any legal responsibility close to infringement of mental property rights stays with the writer(s).
On March 31, 2026, the NYU Legislation Program on Company Compliance and Enforcement (PCCE) hosted David Miller, the Director of Enforcement of the Commodity Futures Buying and selling Fee (CFTC), to ship remarks on the CFTC’s enforcement priorities, insider buying and selling within the prediction markets, and self-disclosure and cooperation with the CFTC. Following his remarks, Director Miller engaged in a hearth chat with Joseph Facciponti, PCCE’s Govt Director. On this publish, specialists and former CFTC officers current reactions to Director Miller’s speech.
©Goldberg: Courtesy of NYU Photograph Bureau
Photograph courtesy of writer
A lot of the dialogue with the CFTC prior to now yr has centered upon its jurisdiction over crypto and prediction markets, so the inclusion of market manipulation particularly within the vitality markets as one of many Division of Enforcement’s priorities is especially notable. Latest studies of anomalous buying and selling exercise within the crude oil and pure gasoline markets in gentle of the battle in Iran have sparked hypothesis of potential insider buying and selling and market manipulation. These media studies replicate the elevated affect of prediction markets and the info that these platforms present within the vitality sector. It has turn into clear that buying and selling within the vitality markets has expanded past futures buying and selling on the normal exchanges to buying and selling occasion contracts tied to the oil and pure gasoline on prediction markets, and due to this fact it isn’t stunning that vitality market manipulation is an enforcement precedence alongside insider buying and selling within the prediction markets.
The CFTC’s Division of Enforcement is not any stranger to bringing circumstances regarding manipulative exercise on conventional exchanges and for misappropriation of fabric personal data within the vitality markets. Nevertheless, prediction markets have rapidly turn into a further instrument for merchants and the info feeds from these prediction markets have been reported to have an elevated affect on oil pricing. Whereas it’s the CFTC’s expectation that the exchanges, together with registered prediction markets, will function the primary line of protection in opposition to abusive buying and selling exercise, how that protection holds with the nascent prediction markets with respect to the vitality markets has but to be seen.
Within the interim, along with taking steps to keep away from manipulative buying and selling exercise and insider buying and selling exercise on conventional exchanges throughout this era of volatility within the vitality sector, companies ought to develop the scope of such efforts to embody buying and selling on prediction markets. Inside controls, in addition to compliance insurance policies and procedures, needs to be revised to deal with buying and selling on prediction markets, documentation of how buying and selling choices are made, and the retention and recordkeeping of any communications made by workers on the prediction market platforms themselves. Moreover, present guidelines and codes of conduct needs to be up to date to ban the misuse of confidential materials nonpublic data when buying and selling on prediction markets and companies ought to think about the enlargement of the scope of who these guidelines ought to apply to. Surveillance efforts ought to monitor buying and selling exercise, in addition to any associated communications, regarding vitality markets throughout conventional exchanges in addition to on prediction markets itemizing energy-related occasion contracts. Because the CFTC’s Division of Enforcement has made market manipulation within the vitality markets an enforcement precedence, companies must hold abreast of market improvements resembling prediction markets that might doubtlessly improve the chance of market manipulation, disruptive buying and selling, and insider buying and selling.
Elizabeth Davis is a Companion at Davis Wright Tremaine LLP.
by Shari Brandt and David Massey
Images courtesy of the authors
In February 2025, then-Performing Chairman Caroline Pham issued the CFTC’s first-ever cooperation “matrix.” Final week, David Miller rescinded that enforcement advisory in favor of a forthcoming new Employees Advisory that guarantees a “clear path to a declination” for events that self report, absolutely cooperate, absolutely remediate, together with by means of ongoing reporting of violative conduct, adjust to tips on remediation and disgorgement, and current no “aggravating circumstances.” A lot will depend upon how these particulars are finally outlined within the Employees Advisory and utilized by means of the primary few declinations which can be publicly introduced. The protection bar shall be watching these take a look at circumstances intently for indicators that the brand new coverage is significant in follow.
A notable change within the new CFTC coverage is that the Division of Enforcement will now award full credit score for a self-report even when the company had beforehand been made conscious of the underlying challenge confidentially. This differs considerably from the DOJ’s new Company Enforcement and Voluntary Self-Disclosure Coverage which treats that situation as a “close to miss” and permits credit score towards a non-prosecution settlement, however not a full declination. Given the CFTC’s disclosure final yr that roughly one-third of its leads and 30% of its open investigations originate from whistleblowers, this new coverage removes a significant aspect of probability that had beforehand sophisticated the choice whether or not to self-report to the CFTC. One other key change is that in assessing whether or not a celebration gives “full” cooperation, the choice going ahead shall be “binary,” and there’ll now not be an evaluation of whether or not cooperation is “passable,” “glorious,” or “exemplary” with corresponding percentages of credit score, as supplied beneath the February 2025 cooperation matrix. It’s unclear whether or not, beneath the brand new coverage, “binary” means there’ll now be an on/off change, whereby a failure to offer requested data or protect a portion of related paperwork at any single level in a prolonged investigation may doubtlessly finish with zero cooperation credit score. Equally, the announcement itself factors out that full cooperation should embody remediation, and that remediation contains, the place applicable, disciplining related workers, together with these liable for the conduct and people with supervisory authority. Underneath this coverage, it’s doable that an organization may find yourself with no cooperation credit score if the Division disagrees with one of many firm’s worker self-discipline choices, regardless that all different standards for declination have been met.
Moreover, though the coverage is supposed to offer a “clear” path towards a declination, it is probably not apparent prematurely of creating a report whether or not the “aggravating circumstances” exception will foreclose that consequence. In his speech, Miller stated that sure circumstances could preclude eligibility (e.g., pervasive intentional or reckless conduct by possession or senior-most administration, in addition to recidivist exercise involving intentional or reckless conduct), after which added, “however not essentially so.” It stays to be seen how the coverage shall be utilized in follow as soon as the formal Employees Advisory is issued.
Shari Brandt and David Massey are Companions at Perkins Coie LLP.
by Charu A. Chandrasekhar and Daniel M. Gitner
Images courtesy of the authors
On March 31, 2026, CFTC Enforcement Director David Miller signaled in his first public remarks as director that insider buying and selling within the prediction markets is the CFTC’s Division of Enforcement’s high precedence. Miller declared that “[i]nsider buying and selling within the prediction markets—the place there may be misappropriated data—is exactly the type of critical violation that we’re going after vigorously.” Whereas acknowledging that prediction markets are inherently “price-discovery markets,” and “[m]arket individuals are entitled to make use of their very own information and data to make buying and selling choices,” he cautioned that the Division of Enforcement “[w]in poor health aggressively detect, examine, and, the place applicable, prosecute insider buying and selling within the prediction markets.”
Director Miller’s assertion follows the CFTC’s latest unequivocal assertion of jurisdiction over buying and selling in prediction markets and steadily mounting scrutiny into potential misuse of MNPI on prediction markets. First, in February 2026, CFTC Chairman Michael Selig confirmed the company’s view that these occasion contracts are in truth swaps, subjecting transactions in these devices to the CFTC’s jurisdiction and broad antifraud and antimanipulation authority beneath CFTC Rule 180.1. Second, the CFTC’s Division of Market Oversight thereafter issued an advisory to prediction market platforms, referred to as Designated Contract Markets (“DCMs”), outlining the employees’s views on regulatory necessities for the itemizing and buying and selling of occasion contracts. The CFTC additionally issued two enforcement advisories addressing prediction markets buying and selling; withdrew guidelines initially proposed in 2024 regarding occasion contracts and a 2025 employees advisory addressing sports activities occasion contracts; and thereafter issued an Advance Discover of Proposed Rulemaking looking for public remark concerning occasion contract derivatives traded on prediction markets.
Given the CFTC’s declared intent to research and prosecute insider buying and selling in prediction markets, asset managers, broker-dealers, and public firms ought to now think about implementing or revising insurance policies and procedures to particularly deal with the misuse of MNPI in reference to prediction markets buying and selling. The misuse of fabric nonpublic data in prediction markets buying and selling presents a rising compliance danger for asset managers, broker-dealers, and public firms, notably as a result of occasion contract accounts could fall exterior conventional private buying and selling surveillance techniques designed for securities accounts. To handle this hole, companies ought to think about increasing present MNPI, insider buying and selling, and code of conduct insurance policies past securities buying and selling to cowl prediction markets and different occasion contracts expressly, with firmwide software the place applicable. Revised insurance policies ought to outline key phrases resembling “prediction markets” and “occasion contracts,” set up a controls framework for private account disclosure, monitoring, pre-clearance, or potential prohibitions, and clearly prohibit buying and selling on or tipping MNPI whatever the market or instrument used. Public firms must also assess whether or not blackout durations, pre-clearance necessities, or heightened restrictions ought to apply to workers with entry to delicate data that might have an effect on occasion markets, whereas asset managers and broker-dealers utilizing prediction market knowledge in buying and selling methods could want to strengthen documentation of buying and selling choices. Extra broadly, companies ought to reevaluate insurance policies governing different non-securities contracts regulated by the CFTC and replace worker coaching and certification applications to replicate these rising dangers.
Charu A. Chandrasekhar and Daniel M. Gitner are Companions at Debevoise & Plimpton LLP.
by Parvin Moyne and Jack Murphy
Images courtesy of authors
Miller’s announcement of a brand new forthcoming employees advisory on cooperation is the seventh advisory on the subject since 2017 and underscores the problem of arriving at a sturdy cooperation framework. The speedy succession of advisories means that the Division of Enforcement continues to recalibrate its method in response to market suggestions, enforcement expertise, and inner priorities. However it additionally raises questions on whether or not the brand new coverage will deliver lasting stability or stay topic to additional revision.
Most lately, in February 2025, the CFTC issued a cooperation advisory containing an in depth, tiered framework for self‑reporting and cooperation, full with particularly enumerated penalty reductions and a matrix‑primarily based method. Miller’s previewed coverage would signify a pointy departure from the prior coverage, abandoning granular matrixes in favor of a simplified binary method. As well as, in contrast to the February 2025 steering, which allowed for a declination solely in “extraordinary circumstances,” the brand new coverage would offer a transparent path to declination for firms that self‑report, cooperate absolutely, and remediate absolutely, absent aggravating circumstances. Whereas a transparent path to declination shall be welcome information to individuals beneath CFTC investigation, the Division’s repeated revisions to its cooperation steering may additionally create hesitation amongst firms and people contemplating whether or not to self‑report or cooperate. Market individuals could moderately query whether or not cooperation undertaken right this moment will proceed to be credited a yr from now beneath the identical commonplace.
The proposed cooperation framework additionally raises vital questions for the CFTC’s whistleblower program, which is designed to incentivize people to report potential violations by providing financial awards and anti‑retaliation protections. If firms can obtain cooperation credit score—and doubtlessly declinations—even when the Fee has already realized of misconduct from a confidential supply, the relative leverage of whistleblower ideas in enforcement outcomes could also be diminished. On the similar time, the whistleblower program stays a vital pipeline for prime‑high quality data, notably the place companies don’t self‑report or the place inner compliance mechanisms fail. It stays to be seen whether or not enhanced cooperation incentives may dampen whistleblower participation, and whether or not the forthcoming steering will deal with points particular to the whistleblower program.
Parvin Moyne is a Companion and Jack Murphy is a Senior Counsel at Akin Gump Strauss Hauer & Feld LLP.
Images courtesy of the authors
by Douglas Okay. Yatter and Catherine Younger
On March 31, 2026, David I. Miller, the newly appointed Director of Enforcement on the Commodity Futures Buying and selling Fee (CFTC or the Fee), delivered remarks at NYU College of Legislation outlining the Division of Enforcement’s priorities beneath CFTC Chairman Michael Selig’s management.
The CFTC’s 5 areas of focus advance the administration’s “again to fundamentals” method to enforcement by emphasizing market integrity and fraud offenses. On the similar time, their breadth portends elevated enforcement exercise, together with in revolutionary areas like prediction markets. When investigations contain novel merchandise and nascent markets, ending “regulation by enforcement” requires that enforcement actions comply with, fairly than change, clear regulatory steering. It stays to be seen how the company will method enforcement in these core areas if and after they implicate novel regulatory points.
Furthermore, whereas emphasizing these 5 areas, Director Miller didn’t preclude different forms of circumstances. Certainly, he said: “There may be one factor I want to point out about different areas of enforcement I’ve not mentioned right this moment. Even inside these areas, together with compliance, if we have now somebody who repeatedly violates the CEA and our guidelines, and/or does so willfully, we aren’t going to take a seat idly by — we’re going to do one thing about it.” What different forms of circumstances the company could deliver, and in what circumstances, stay open questions.
The breadth of the CFTC’s enforcement program additionally highlights that the company has a substantial amount of floor to cowl with restricted assets. Director Miller famous that the Division of Enforcement shall be hiring further employees to assist deal with its precedence areas. He additionally burdened that exchanges carry out surveillance and compliance capabilities that “are a vital line of protection,” and he underlined the CFTC’s partnership with the SEC, self-regulatory organizations, state regulators, and the Division of Justice, in addition to its new MOU with Main League Baseball. The business shall be eager to see how the CFTC marshals these numerous assets, and when it chooses to deliver circumstances or defers to different authorities to take action.
Lastly, by offering a clearer path to declinations, the CFTC’s forthcoming coverage replace on self-reporting and cooperation could incentivize extra frequent studies of potential misconduct. Whether or not it does so will depend upon the coverage’s contours and the way the company acknowledges self-reporting and cooperation in its enforcement choices. As all the time, an organization that turns into conscious of potential wrongdoing however doesn’t but have all of the info could must navigate a fancy set of things in figuring out how one can proceed.
Douglas Okay. Yatter is a Companion and Catherine Younger is an Affiliate at Latham & Watkins LLP. Latham affiliate John Federico contributed to this text.
The views, opinions and positions expressed inside all posts are these of the writer(s) alone and don’t signify these of the Program on Company Compliance and Enforcement (PCCE) or of the New York College College of Legislation. PCCE makes no representations as to the accuracy, completeness and validity or any statements made on this web site and won’t be liable any errors, omissions or representations. The copyright of this content material belongs to the writer(s) and any legal responsibility close to infringement of mental property rights stays with the writer(s).
