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CFTC Division of Enforcement Issues New Cooperation Policy

By Jeffry M. Henderson, William Mack, Tracy S. Combs & Douglas E. Arend on June 3, 2026
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Money Trading

On May 19, 2026, the Commodity Futures Trading Commission (CFTC)’s Division of Enforcement (Division) issued a new Division Policy on Cooperation (2026 Policy) establishing a revised enforcement policy for evaluating self-reporting, cooperation, remediation, restitution and/or disgorgement. The 2026 Policy rescinds and supersedes the Division’s 2025 Enforcement Advisory (2025 Advisory), providing a more structured and specific – and in some respects more rewarding – framework for registrants to self-report. The availability of a formal declination pathway for registrants that fully cooperate, remediate, and make victims whole represents a significant incentive for prompt and complete disclosure. At the same time, the elimination of the 2025 Advisory’s tiered matrix in favor of threshold requirements means that partial credit for incomplete cooperation or remediation is more limited.

Link to Click here to read the full GT Alert. Click here to read the full GT Alert.

Photo of Jeffry M. Henderson Jeffry M. Henderson

Jeff Henderson, a former general counsel for a publicly traded futures commission merchant, has deep futures and derivatives industry experience. He focuses his practice on a variety of complex compliance, regulatory, investigation, litigation, and managed fund matters. This representation regularly involves futures, derivatives…

Jeff Henderson, a former general counsel for a publicly traded futures commission merchant, has deep futures and derivatives industry experience. He focuses his practice on a variety of complex compliance, regulatory, investigation, litigation, and managed fund matters. This representation regularly involves futures, derivatives, swaps, forex, securities, cryptocurrency, binary options and prediction markets. He represents and advises a broad range of clients, including futures commission merchants, broker-dealers, investment advisers, commodity trading advisers, introducing brokers, forex trading firms, commodity pool operators, and hedge fund managers. He also provides counsel to a variety of industry participants, including traditional proprietary trading firms and exempt investment managers regarding disclosure matters and compliance obligations and regulatory and enforcement matters. Jeff also has significant experience advising funded-trader proprietary trading firms regarding a wide variety of structuring and regulatory matters. He is also regularly involved in defending members and member firms before CFTC, NFA, SEC and FINRA. His experience includes regulatory matters involving designated contract markets (DCM) and derivatives clearing organizations (DCO), particularly in the area of prediction markets offering event contracts, as well as currently serving as a public director and member of the Regulatory Oversight Committee for a U.S.-based DCM and a DCO involved in prediction markets.

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Photo of William Mack William Mack

William B. Mack is a co-chair of the Financial Regulatory & Compliance Practice. He is experienced in advising companies on regulatory and compliance matters relating to the Securities and Exchange Commission regulations, the Exchange Act, Anti-Money Laundering laws and Financial Industry Regulatory Authority

…

William B. Mack is a co-chair of the Financial Regulatory & Compliance Practice. He is experienced in advising companies on regulatory and compliance matters relating to the Securities and Exchange Commission regulations, the Exchange Act, Anti-Money Laundering laws and Financial Industry Regulatory Authority (FINRA) rules.

William’s practice involves all aspects of broker-dealer regulation, including Self-Regulatory Organization (SRO) membership, supervision, employment, research, soft dollar arrangements, chaperoning of foreign broker-dealers, social media, use of foreign finders, anti-money laundering rules, alternative trading systems (ATS), exchanges, and market making issues. He also provides regulatory guidance to investment banking clients in connection with securities offerings and related trading issues.

William advises firms in the FINRA new membership (NMA) and the continuing membership (CMA) processes. William assists firms to develop or amend their written supervisory procedures and compliance manuals.

William routinely represents clients who are negotiating placement agent agreements, foreign finders agreements, clearing agreements, agreements with registered representatives and expense-sharing agreements.

William assists broker-dealers and their associated persons to respond to regulatory examinations and inquiries and provides effective representation in a range of enforcement proceedings with the SEC, FINRA, NYSE, state and foreign regulatory authorities. He regularly prepares and defends witnesses in FINRA on-the-record interviews and SEC testimony. Enforcement matters have involved issues including market manipulation, supervision, customer defalcations, insider trading, anti-money laundering, distribution of unregistered securities, direct market access, market making, soft dollar arrangements, cross border trading, electronic intrusion and customer impersonation, sales practices, supervision, private placements, ETFs, indexes, and other securities products.

William regularly addresses questions with respect to what activities require or are exempt from broker-dealer registration. William assists firms in obtaining guidance, interpretive letters, and no-action relief from FINRA and the SEC with respect to novel securities issues and the creation of new products and services. William also advises clients on cryptocurrency, tokenization, NFTs, DeFi structures, and digital asset exchanges and trading.

Prior to joining the firm, William was a Principal Counsel for Enforcement at FINRA. Before FINRA, he was the Director of the Executive Secretariat in the Office of the U.S. Trade Representative. William also served as a Deputy Associate Counsel at the White House, advising primarily on appointments and investigations. Before the White House, he practiced at large firms in New York. William clerked for Judge Robert L. Carter in the Southern District of New York.

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Photo of Tracy S. Combs Tracy S. Combs

Tracy serves as Co-Managing Shareholder of the Salt Lake City office. A former Regional Director at the U.S. Securities and Exchange Commission, she represents corporations, financial institutions, and individuals in a wide range of federal and state government investigations, litigation, and regulatory inquiries…

Tracy serves as Co-Managing Shareholder of the Salt Lake City office. A former Regional Director at the U.S. Securities and Exchange Commission, she represents corporations, financial institutions, and individuals in a wide range of federal and state government investigations, litigation, and regulatory inquiries nationwide, including those involving the SEC, the Department of Justice, and state Attorneys General. She also counsels clients in complex business disputes, tort litigation, and cybersecurity matters. As Utah Business Journal’s Legal Elite edition stated in 2025, Tracy can “navigate a wide range of legal situations and…easily handle a crisis for any client.”

Tracy joined GT after an eight-year tenure at the SEC, where she served in a variety of roles in San Francisco and Salt Lake City. Most recently, Tracy served as Director of the SEC’s Salt Lake Regional Office, where she oversaw some of its most high-profile cases. As a former SEC trial and investigative attorney in San Francisco, Tracy brought several groundbreaking enforcement actions, including the SEC’s first public company cybersecurity disclosure case and its first “shadow” insider trading case. Tracy served for three years in the Division of Enforcement’s former Cyber Unit, where she co-led its Cybersecurity & Regulated Entities group. In 2021 to 2022, Tracy served as counsel to the Director of Enforcement, advising on priority matters and coordinating with the SEC’s criminal and civil law enforcement partners nationwide.

Prior to her government service, Tracy was a litigator at a large law firm in Philadelphia and New York, with a focus on high-stakes white collar criminal matters, securities class actions, and complex commercial disputes, and clerked for the Honorable Luis Felipe Restrepo in the U.S. District Court for the Eastern District of Pennsylvania.

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Photo of Douglas E. Arend Douglas E. Arend

Doug Arend focuses his practice on commodity futures, derivatives and securities, with an emphasis on managed funds. He represents registered and exempt investment advisers, commodity pools and hedge funds, traditional proprietary trading firms, introducing brokers, futures commission merchants and broker-dealers. Doug has significant…

Doug Arend focuses his practice on commodity futures, derivatives and securities, with an emphasis on managed funds. He represents registered and exempt investment advisers, commodity pools and hedge funds, traditional proprietary trading firms, introducing brokers, futures commission merchants and broker-dealers. Doug has significant experience advising funded-trader proprietary trading firms regarding a wide variety of structuring and regulatory matters. He concentrates on complex transactional and regulatory matters, including public and private offerings, fund formation, business structuring, registration and compliance. His experience includes regulatory matters involving designated contract markets and derivatives clearing organizations, particularly in the area of prediction markets offering event contracts.

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  • Posted in:
    Administrative and Regulatory
  • Blog:
    Financial Services Observer
  • Organization:
    Greenberg Traurig, LLP
  • Article: View Original Source

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