More Signs of Life with CFTC Whistleblower Program

By the Constantine Cannon Whistleblower Team

On June 11, the Commodity Futures Trading Commission (CFTC) announced its publication of a Notice of Proposed Rulemaking (NPR) to amend its whistleblower rules.[1]  The proposed change is quite narrow — merely incorporating a 30% presumption for whistleblower awards of $5 million or less.  However, it is significant in further signaling the CFTC Whistleblower Program is alive and well with the full backing of the agency.

What is the CFTC Seeking to Accomplish With Its Proposed Whistleblower Rule Change?

Under the CFTC Whistleblower Program (like the companion SEC Whistleblower Program), individuals who provide information to the agency that leads to a successful enforcement action may receive up to 30% of the Government’s recovery.  The SEC program has been wildly successful, resulting in thousands of whistleblower tips a year, tens of billions of dollars in SEC recoveries, and more than $2 billion in awards to roughly 450 whistleblowers.

The CFTC program has been less prolific than the SEC program but still successful in attracting scores of whistleblower tips, leading to roughly $3.3 billion in recoveries and almost $400 million in whistleblower awards.  As the CFTC notes in the NPR (at 8), in 2024 roughly 42% of the agency’s enforcement actions involved whistleblowers.

However, one of the bigger issues that has plagued the program is how long it takes the CFTC to issue awards, generally several years after the agency has successfully resolved the matter.  As the agency describes the problem in the NPR (at 8-9): “The length of the lag between claim submission and award is a concern for Program participants — as well as the Commission and legislators — and could dampen incentives for potential whistleblower to participate in the Program in the future.”

The proposed rule seeks to shore up this major pitfall by creating a presumption of a 30% whistleblower award (the highest end of the allowable range) for matters where that percentage take would result in an award of $5 million or less.  With this presumption, the CFTC in its NPR (at 9) hopes “to address the whistleblower claim processing delays as well as improve process transparency . . . and enhance the Program’s continued success by reinforcing whistleblowers’ incentives to participate in it.”

According to the CFTC (at 10), the proposed rule changes will “shorten the time needed to resolve and pay on small meritorious whistleblower claims by limiting the scope of analysis over (and the need for extended intra-agency discussion about) the appropriate award percentage, as well as reconsideration requests.”  This will in turn free up agency staff “to concentrate more on larger awards, facilitating the [CFTC]’s ability to assess and pay larger awards more quickly.”

As the CFTC also points out, the other benefit of the rule change is it would harmonize the CFTC’s rules with the SEC rules, which already provide for a 30% presumption on whistleblower awards of $5 million or less.  Indeed, the proposed CFTC rule is modeled on this SEC provision and the CFTC’s expectation it will achieve the same success the SEC has achieved with this rule.  As the SEC has reported, the 30% presumption has “allowed for increased consistency among awards and greater transparency to claimants and their counsel,” and “assisted . . . in expediting the processing of award claims.”[2]

What Does the CFTC’s Proposed Whistleblower Rule Change Signal for the Agency Going Forward?

Beyond the proposed rule change itself, the CFTC’s effort here is a strong signal of the agency’s ongoing commitment to the Whistleblower Program and the agency’s clear recognition of the vital role of whistleblowers in the CFTC enforcement scheme.  In announcing the NPR, CFTC Chair Michael Selig himself weighed in on how “critical” it is “that our Whistleblower Office promptly and transparently process whistleblower claims,” and that the proposed amendment “is an important additional step towards harmonization with the SEC while advancing the interests of whistleblowers.”

This strong pro-whistleblower sentiment is reflected throughout the NPR, which repeatedly highlights the importance of whistleblowers, all that the Whistleblower Program has accomplished, and the agency’s goal of encouraging more whistleblowers to come forward:

• • “The Commission expects the proposed substantive amendment . . . to increase the efficiency, transparency, and predictability of whistleblower claims processing, thereby protecting and enhancing the program’s effectiveness in incentivizing whistleblowers to report.” [1]

• • “The Commission’s whistleblower program [] serves an important role in upholding the fairness and integrity of the nation’s commodities markets. By providing a means to financially reward individuals who come forward and provide original information about illegal conduct to the Commission, the Program enhances the Commission’s enforcement effort, in turn deterring legal noncompliance.”  [4]

• • With the proposed rule change, the CFTC hopes “to increase the Program’s overall efficiency, transparency, and predictability, thereby helping to preserve-and potentially enhance-whistleblowers’ incentives to report unlawful conduct.” [10]

• • “Reduced whistleblowing activity . . . could impair the Commission’s ability to enforce the [Commodities Exchange Act] and its regulations effectively, diminish deterrence, and ultimately hinder the Commission’s broader mission of protecting market participants and the public; supporting market efficiency, competitiveness and market integrity; and ensuring sound price discovery and risk management.” [21]

• • “Based on awards the Commission issued through calendar year 2025, whistleblower submissions have contributed to legal judgments calling for more than $3.3 billion in financial remedies and the return of approximately $160 million to harmed customers. . . . These figures demonstrate that the program is firmly established, widely used, and integral to the Commission’s enforcement objectives.”  [25]

• • “By reinforcing the incentive for whistleblowers to promptly report information that may reveal systemic risks, operational failures, or abusive conduct, the proposal enhances the Commission’s ability to address emerging threats to market integrity. These benefits may be particularly significant given the ongoing evolution of the markets within the Commission’s jurisdiction and the accompanying uncertainty in predicting future patterns of misconduct.”  [41-42]

The proposed rule change follows the $8 million whistleblower award the agency made to five whistleblowers a few weeks ago, the fourth CFTC whistleblower award — and by far the largest — under the current Trump Administration.  And it comes just two months after the agency appointed Raagnee Beri as the CFTC’s new Whistleblower Chief.

Can We Expect An Increase in the Number of CFTC Whistleblower Awards?

All this CFTC whistleblower-related activity is a strong indication the CFTC Whistleblower Program is alive and well, with strong agency backing and more whistleblower awards likely on the horizon. As Constantine Cannon partner Dan Vitelli remarked, “the recent awards and, most notably, the proposed rule change to strengthen the integrity of the Whistleblower Program, all point in the same direction — an agency committed to whistleblowers and to doing what it can to encourage whistleblowers to come forward.”

Whether this ultimately will lead to more CFTC whistleblower awards remains to be seen, but Vitelli is cautiously optimistic.  “The CFTC recognizes the powerful incentive that awards play in encouraging whistleblowers to come forward,” Vitelli says.  “The importance of these incentives is a driving force behind the proposed rule changes,” Vitelli adds.  “That is why I’m hopeful that we’ll see an increase in CFTC whistleblower awards in the future.”

Constantine Cannon Has Substantial Experience Representing CFTC Whistleblowers

Constantine Cannon has substantial experience representing whistleblowers under the CFTC Program and the many other whistleblower rewards programs.  If you would like to learn more about the program, what it means to be a whistleblower more generally, or our multiple whistleblower successes, please do not hesitate to contact us.  We will connect you with an experienced member of the Constantine Cannon whistleblower team for a free and confidential consultation.

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[1]  See https://www.cftc.gov/PressRoom/PressReleases/9250-26 (CFTC Press Release); https://www.govinfo.gov/content/pkg/FR-2026-06-15/pdf/2026-12006.pdf (Notice of Proposed Rulemaking).

[2]  See 2021 SEC Annual Whistleblower Report at 18 (https://www.sec.gov/files/2021_ow_ar_508.pdf).

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