On March 31, 2026, the newly appointed director of the U.S. Commodity Futures Trading Commission (CFTC) Division of Enforcement, David Miller, outlined his agency’s revised enforcement approach and previewed forthcoming guidance intended to provide clarity around declinations for entities that voluntarily self-report misconduct, cooperate fully, and undertake timely and meaningful remediation. At the same time, Miller emphasized that the agency has expanded its enforcement resources and will pursue serious misconduct across commodities markets, including insider trading in prediction markets and market manipulation.
CFTC Enforcement Priorities
In his first public address since taking office, Miller emphasized that the “era of regulation by enforcement is over” and asserted that the division would focus on its “core purpose of policing fraud, abuse, and manipulation rather than setting policy.” He set out five enforcement priorities for the CFTC:
- Insider trading, including in prediction markets.
- Market manipulation, particularly in the energy markets.
- Market abuse and disruptive trading, such as spoofing.
- Retail fraud, such as Ponzi schemes.
- Willful violations of anti-money laundering and know-your-customer laws and rules.
Miller explained that, in focusing on these areas, the division would not prioritize “technical violations” but instead “those who willfully decide to break these essential laws.” He further emphasized that the division would “be hiring additional staff in the Division of Enforcement to help address” these priorities and “work closely with federal criminal authorities at the Department of Justice and make criminal referrals as appropriate.”
Coming Soon: A New Framework for Cooperation
Miller noted that the division would be issuing a revised cooperation framework (superseding the agency’s February 2025 framework, which was discussed in a prior Alston & Bird advisory) to increase transparency and predictability for companies that proactively disclose potential violations. He outlined a policy focused on three familiar concepts: self-reporting, cooperation, and remediation, and his characterization of the division’s forthcoming policy largely aligned with comparable programs at the DOJ and elsewhere. He also signaled what may be a more permissive approach to self-disclosure credit, suggesting it would be available even when “the CFTC already knew about the issue,” and even when registrants would be obligated to report it in annual chief compliance officer reports.
Prediction Markets in the Crosshairs
Miller devoted a significant portion of his remarks to insider trading in prediction markets. Reiterating the CFTC’s view that event contracts are swaps, and highlighting some of the “areas of potential concern” related to event contracts tied to sports and government action, Miller reminded his audience that the division has “applied insider trading law to our jurisdictional products,” and encouraged exchanges “to look at steps relevant to fighting manipulation and insider trading.”
He also detailed how the division would approach insider trading cases in prediction markets, explaining that such conduct would be actionable under a misappropriation theory when an individual in possession of material nonpublic information owes a duty of trust and confidence to the source of that information and, with the requisite scienter, trades or tips in breach of that duty.
While Miller promised that the division would “be active in this area,” he also stated that it would “exercise [its] prosecutorial discretion and not dedicate [its] resources to trivial cases or cases where there is no clear breach of duty.” He further noted that the division may rely on numerous provisions of the Commodity Exchange Act to pursue misconduct in prediction markets, including those prohibiting insider trading, market manipulation, and other fraudulent trading practices.
Looking Ahead
As the first significant public statement from new Division of Enforcement leadership, Miller’s remarks send an important signal about the division’s direction and provide key guidance for registrants and their counsel. They highlight the division’s intention to engage in robust enforcement activity related to a variety of conduct using increased resources and a soon-to-be-issued Staff Advisory on Cooperation. Miller’s remarks also underscore the importance of robust internal compliance and investigative processes. Those subject to CFTC jurisdiction—including participants in novel and dynamic areas such as prediction markets—should assess whether their procedures allow for timely identification of possible issues, informed decisions on self-disclosure, and well-documented remediation efforts, all of which will be critical under the division’s anticipated enforcement framework.
If you have any questions, or would like additional information, please contact one of the attorneys on our White Collar, Government & Internal Investigations, Financial Services, or Investment Funds teams.
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