Notice2025-17400

Policy Statement Concerning Agency Referrals for Potential Criminal Enforcement

Primary source

Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.

Published
September 10, 2025
Effective
September 10, 2025

Issuing agencies

Commodity Futures Trading Commission

Abstract

This notice describes plans of the Commodity Futures Trading Commission (the "Commission") to address criminally liable regulatory offenses under the recent executive order on Fighting Overcriminalization in Federal Regulations.

Full Text

<html>
<head>
<title>Federal Register, Volume 90 Issue 173 (Wednesday, September 10, 2025)</title>
</head>
<body><pre>
[Federal Register Volume 90, Number 173 (Wednesday, September 10, 2025)]
[Notices]
[Page 43586]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-17400]


=======================================================================
-----------------------------------------------------------------------

COMMODITY FUTURES TRADING COMMISSION


Policy Statement Concerning Agency Referrals for Potential 
Criminal Enforcement

AGENCY: Commodity Futures Trading Commission.

ACTION: Policy statement.

-----------------------------------------------------------------------

SUMMARY: This notice describes plans of the Commodity Futures Trading 
Commission (the ``Commission'') to address criminally liable regulatory 
offenses under the recent executive order on Fighting 
Overcriminalization in Federal Regulations.

DATES: The Commission's policy statement is effective September 10, 
2025.

FOR FURTHER INFORMATION CONTACT: Meghan Tente, General Counsel, 
<a href="/cdn-cgi/l/email-protection#325f46575c465772515446511c555d44"><span class="__cf_email__" data-cfemail="600d14050e140520030614034e070f16">[email&#160;protected]</span></a> at (202) 418-5785, Commodity Futures Trading 
Commission, Three Lafayette Centre, 1155 21st Street NW, Washington, DC 
20581.

SUPPLEMENTARY INFORMATION: On May 9, 2025, the President issued 
Executive Order 14294 (``E.O.''), titled Fighting Overcriminalization 
in Federal Regulations. 90 FR 20363 (published May 14, 2025). Section 7 
of E.O. 14294 provides that within 45 days of the order, and in 
consultation with the Attorney General, each agency should publish 
guidance in the Federal Register describing its plan to address 
criminally liable regulatory offenses, including by considering certain 
factors when deciding whether to refer alleged violations of criminal 
regulatory offenses to the Department of Justice. The Executive Order 
defines a criminal regulatory offense to mean ``a Federal regulation 
that is enforceable by a criminal penalty.'' In accordance with the 
Executive Order, the Commission is publishing this framework for 
Commission staff consideration of whether to refer potential 
violations, including of criminal regulatory offenses, to the 
Department of Justice.
    Consistent with that requirement, the Commission advises the public 
that by May 9, 2026, the Commission, in consultation with the Attorney 
General, will provide to the Director of the Office of Management and 
Budget (``OMB'') a report containing: (1) a list of all criminal 
regulatory offenses enforceable by Commission or the Department of 
Justice (``DOJ''); and (2) for each such criminal regulatory offense, 
the range of potential criminal penalties for a violation and the 
applicable mens rea standard \1\ for the criminal regulatory offense.
---------------------------------------------------------------------------

    \1\ ``Mens rea'' means the state of mind that by law must be 
proven to convict a particular defendant of a particular crime. E.O. 
14294, sec. 3(c).
---------------------------------------------------------------------------

    This notice also announces a general policy, subject to appropriate 
exceptions and to the extent consistent with law, that when the 
Commission is deciding whether to refer alleged violations of criminal 
regulatory offenses \2\ to DOJ, Commission staff should consider, among 
other factors:
---------------------------------------------------------------------------

    \2\ See section 9 of the Commodity Exchange Act (``CEA''), 7 
U.S.C. 13, which, among other things, makes it a felony to willfully 
violate any rule or regulation promulgated under the CEA. Section 
9(a)(5) of the CEA, 7 U.S.C. 13(a)(5).
---------------------------------------------------------------------------

    <bullet> The harm or risk of harm, pecuniary or otherwise, caused 
by the potential offense;
    <bullet> The potential gain to the putative defendant that could 
result from the offense;
    <bullet> Whether the putative defendant held specialized knowledge, 
expertise, or was licensed in an industry related to the rule or 
regulation at issue;
    <bullet> Evidence, if any is available, of the putative defendant's 
general awareness of the unlawfulness of his conduct as well as his 
knowledge or lack thereof of the regulation at issue;
    <bullet> Whether the putative defendant is a recidivist or has 
otherwise engaged in a pattern of misconduct; and
    <bullet> Whether the involvement of the Department of Justice will 
provide additional meaningful protection to participants in the 
derivatives markets.
    This general policy is not intended to, and does not, create any 
right or benefit, substantive or procedural, enforceable at law or in 
equity by any party against the United States, its departments, 
agencies, or entities, its officers, employees, or agents, or any other 
person.

    Issued in Washington, DC, on September 5, 2025, by the 
Commission.
Robert Sidman,
Deputy Secretary of the Commission.
[FR Doc. 2025-17400 Filed 9-9-25; 8:45 am]
BILLING CODE 6351-01-P


</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>
Indexed from Federal Register on September 10, 2025.

This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.