CFTC Enforcement Chief: Focus on Insider Trading, Market Manipulation, and AML/KYC Violations

On April 1, David I. Miller, the enforcement chief of the U.S. Commodity Futures Trading Commission (CFTC), stated in a speech at New York University School of Law that the agency’s future enforcement efforts will concentrate on five key areas: insider trading, market manipulation, market abuse, retail fraud, and anti-money laundering (AML) and Know Your Customer (KYC) violations. He explicitly noted that insider trading regulations also apply to prediction markets, and trading based on undisclosed material information will be deemed illegal and will be ‘actively investigated and prosecuted.’ Additionally, the CFTC plans to shift away from a model of ‘enforcement as regulation’ to focus on core illegal activities such as fraud and manipulation. The agency also intends to introduce new cooperation policies that offer leniency or even exemption paths for institutions that conduct self-assessments, cooperate with investigations, and complete corrective actions. Furthermore, the CFTC will enhance collaboration with exchanges and judicial bodies to target market manipulation in the energy sector and fraud facilitated by new technologies such as AI.