WASHINGTON, D.C.— Benjamin Schiffrin, Director of Securities Policy for Better Markets, issued the following statement in connection with the Commodity Futures Trading Commission rescinding its rule preventing settling defendants from denying the allegations:

“One week ago, the CFTC sided with the defendant in one of its enforcement actions against its own staff. Despite the firm previously settling the case and agreeing not to deny the allegations on which it was based, the CFTC said it now shared the firm’s view that the case should not have been brought. Now, the CFTC has done away with its policy of preventing defendants from settling enforcement actions while denying the allegations entirely.

“The CFTC says that this decision will give it ‘more flexibility in settling enforcement actions.’ It will certainly give more defendants what they want. Defendants in CFTC enforcement actions will now have the flexibility to settle cases without admitting liability and while denying liability. It is hard to understand why the CFTC would want this ‘flexibility.’ It is easy to understand why defendants would want to be able to get the benefit of a settlement, which usually leads to more lenient sanctions, without the costs, which usually entail not denying allegations publicly after agreeing not to challenge them as part of the settlement.

“The CFTC insists that it will pursue misconduct vigorously. It is hard to imagine less vigorous enforcement than a policy that only benefits defendants and not the agency. Today’s action continues a troubling trend of the CFTC giving the industries it supposedly regulates everything they could possibly want, to the detriment of the public.

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Better Markets is a non-profit, non-partisan, and independent organization founded in the wake of the 2008 financial crisis to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. Better Markets works with allies—including many in finance—to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans’ jobs, savings, retirements and more. To learn more, visit www.bettermarkets.org.