The Commodity Futures Trading Commission (CFTC) is
revamping its enforcement structure, prioritizing fraud prevention and victim
protection while moving away from regulation by enforcement.

According to an announcement by the watchdog today
(Tuesday), this significant shift aims to streamline operations, enhance
oversight, and ensure market fairness without penalizing compliant businesses.

Acting Chairman Caroline D. Pham announced the
restructuring of the Division of Enforcement, emphasizing that the changes will
allow the CFTC to focus on fraud while ensuring fairness in its regulatory
actions.

CFTC Boosts Enforcement Programs

“The CFTC is strengthening its enforcement program to
focus on victims of fraud, as well as remaining vigilant for other violations
of law. This simplified structure will stop regulation by enforcement and is
more efficient, Pham stated.

“These much-needed changes will maximize the CFTC’s
resources to bring more actions to pursue fraudsters and other bad actors, and
not punish good citizens.”

This transformation will consolidate the division’s
previous task forces into two new units: the Complex Fraud Task Force and the
Retail Fraud and General Enforcement Task Force.

The Complex Fraud Task Force will oversee
investigations and litigations related to complex fraud and manipulation across
all asset classes. Paul Hayeck, the current Deputy Director, will serve as the
Acting Chief of this task force.

The Retail Fraud and General Enforcement Task Force
will focus on retail fraud and violations of the Commodity Exchange Act, under
the leadership of Acting Chief Charles Marvine, also a Deputy Director.

Fighting Rising Financial Scams

CFTC Acting Director of Enforcement Brian Young
highlighted the need for this shift, stating, “Fraudsters are constantly
evolving their tactics to exploit market participants and undermine the rules
that provide the foundation for a vibrant, resilient, and innovation-forward
marketplace.”

“This taskforce realignment will enhance our vigorous
and energetic enforcement program by empowering our talented staff to focus
their expertise on matters that secure justice for victims and uphold public
confidence in the integrity of our markets.”

By streamlining enforcement, the CFTC aims to uphold
market integrity without stifling legitimate market activity. The focus is now
on pursuing bad actors rather than punishing businesses that adhere to the law.

With this shift, the CFTC signals a commitment to
protecting investors, maintaining fair market conditions, and holding
fraudsters accountable. The regulator has encouraged individuals to report
suspicious activities or possible violations of commodity trading laws.