June 16, 2026
Amendments promise to improve efficiency, transparency, and strengthen whistleblower incentives.
On June 11, 2026, The Commodity Futures Trading Commission (CFTC/Commission) announcedthe publication of a Notice of Proposed Rulemaking to amend certain sections of its whistleblower rules, Part 165 under the Commodity Exchange Act (CEA), for determining the award amount.
The proposal incorporates a 30% presumption for whistleblower awards of $5 million or less, subject to Commission discretion and its analysis of relevant regulatory factors. The proposed rule is modeled on theSecurities and Exchange Commission’s (SEC) rule 21F-6(c), further enhancing the ongoing efforts at harmonization between the two Agencies.
The CFTC expects this new provision to improve the efficiency, transparency, and predictability of whistleblower award claims’ processing.
All public comments must be submitted through Regulations.gov by July 15, 2026.
Background of Proposal
The CFTC’s whistleblower program plays a critical role in protecting the integrity of U.S. commodities, futures, and derivatives markets by incentivizing individuals to report fraud or misconduct. Established under Section 23 of the CEA and implemented through Part 165 of the Commission’s regulations, the program offers financial awards to individuals who voluntarily provide original information that leads to successful enforcement actions.
Since its inception, the CFTC’s Whistleblower Program has helped its Division of Enforcement secure over $3.3 billion in financial remedies and led to more than $395 million in awards. However, the program faces challenges, most notably, delays. As the Commission states in the Notice, on average it takes over two and a half years to move from claim submission to final award, potentially discouraging participation.
To address the delays, proposed amendments aim to streamline the process—particularly for smaller awards—by reducing the time and resources spent on determining precise award percentages. These changes are intended to accelerate payments, improve transparency, and strengthen incentives for whistleblowers, ensuring the program’s continued success.
Overview of the Proposed Amendments
The Commission proposes to amend Part 165 to increase the program’s overall efficiency, transparency, and predictability, thereby helping to preserve and potentially enhance incentives for whistleblowers to report unlawful conduct.
Specifically, the proposed amendment to section 165.9, i.e., criteria for determining amount of the whistleblower award provides that, subject to Commission discretion and its analysis of relevant regulatory factors, where the statutory maximum award of 30% of the monetary sanctions collected would total $5 million or less for all actions involving the whistleblower’s original information, the award amount will be set conditionally at the 30% statutory maximum. This presumption would not apply if:
- The claimant was culpable, interfered with compliance/reporting systems, or otherwise triggers section 165.17, which addresses whistleblowers who engage in culpable conduct.
- The claimant unreasonably delayed reporting.
- A 30% award is unwarranted due to limited assistance or inconsistency with public interest.
The Commission views this proposed amendment as warranted and appropriate for several reasons:
- Improved efficiency: Proposed Rule 165.9(d) is expected to significantly reduce award determination time by streamlining staff review, allowing the Commission to process more claims in the same timeframe.
- Stronger incentives: The proposed rule helps prevent erosion of whistleblower incentives by ensuring faster, more predictable outcomes for smaller awards.
- Greater transparency and predictability: By clarifying that awards under $5 million will generally receive 30%, the proposed rule provides whistleblowers clearer expectations, encouraging reporting.
- Balanced design: The proposed rule enhances efficiency and clarity without compromising program integrity or the public interest.
- Regulatory alignment: It aligns the CFTC program with the SEC’s similar 30% presumption framework, reinforcing consistency across agencies.
Whistleblowers play a critical role in ensuring the integrity of the U.S. and global financial markets. Both the SEC and CFTC rely on whistleblowers to help them enforce violations of the federal securities laws and the Commodity Exchange Act. If you have witnessed fraud or misconduct, consider blowing the whistle.
The SEC’s Whistleblower Program and the CFTC’s Whistleblower Program provide comprehensive guidelines on reporting fraud and the whistleblower process. Access the Tip, Complaint or Referral (TCR) forms: SEC Form TCR and the CFTC Form TCR.
About the Author
Christina McGlosson, special counsel in Cohen Milstein’s Whistleblower practice, focuses exclusively on Dodd-Frank Whistleblower representation. She is the former acting director of the Whistleblower Office in the Division of Enforcement at the U.S. Commodity Futures Trading Commission. She was a senior attorney in the SEC’s Division of Enforcement, where she assisted in drafting the SEC rules to implement the whistleblower provisions of Dodd-Frank and served as Senior Counsel to the Director of the SEC’s Division of Enforcement and to its Chief Economist.
Christina represents whistleblowers in the presentation and prosecution of fraud claims before the SEC, CFTC, FinCEN, as part of the U.S. Treasury, the Department of Justice, and other government agencies.