Securities Regulation Daily Wrap Up, WHISTLEBLOWER NEWS—CFTC seeks comment on amendments to improve efficiency and effectiveness of whistleblower program, (Jun 12, 2026)

By Rebecca E. Hoffman, J.D.

The changes would reduce the time it takes for successful whistleblowers to receive their awards, thus boosting the value of the incentive.

The CFTC announced a notice of proposed rulemaking June 11, asking the public to comment on planned amendments to the rules implementing Section 23 of the Commodities Exchange Act. These rules cover awards for those who supply information to the CFTC leading to successful actions against violations of the CEA or its regulations.

“It is critical that our Whistleblower Office promptly and transparently process whistleblower claims,” CFTC chair Michael S. Selig said in a press release. “This is an important additional step towards harmonization with the SEC while advancing the interests of whistleblowers.”

Current program. To qualify for an award, sanctions must total over $1 million. Factors that affect the amount of an award include the degree to which the whistleblower assisted the Commission, and whether and to what extent the whistleblower was involved in the violation or delayed in providing the information.

The NPRM indicates that the whistleblower program has been successful. However, the CFTC is seeking to shorten the time it takes to process and pay out awards, noting that the time gap—averaging over 2.5 years—diminishes the value of the award and makes it less likely for a whistleblower to come forward. “The proposed amendment is intended to address the whistleblower claim processing delays as well as improve process transparency—improvements designed to safeguard and enhance the Program’s continued success by reinforcing whistleblowers’ incentives to participate in it,” the Commission explained.

‘30 Percent Presumption.’ The amendments would streamline the process for determining the award percentage. Instead of analyzing factors for every award regardless of size to assess the percentage for which a whistleblower would be eligible, the proposed new rule would introduce the “30 Percent Presumption,” whereby the whistleblower would be set to receive an amount that is 30 percent of monetary sanctions collected, if that amount would total $5 million or less. The presumption is conditional, and would not apply if: 1) the claimant was culpable or involved in the violation, 2) the claimant unreasonably delayed their reporting, or 3) the assistance was “limited or inconsistent with public interests.”

The Commission expects that if the amendments are adopted, the Whistleblower Office staff will not have to devote so much time to gauge where the percentage should fall in the statutory range of 10 to 30 percent, and there will not be as many claimants who will contest the percentage determination. Further, “[e]conomic theory and common experience suggest that shorter, more predictable timelines reinforce the incentive to report promptly by increasing the perceived value of prospective awards.”

Harmonization. The NPRM noted that the SEC enacted a similar rule, which has been successful so far, with less of a lag between reporting and receiving an award, and with more transparency and consistency in the process. “[H]armonizing the Commission’s approach with SEC rule 21F 6(c) should reduce interagency differences that otherwise may create uncertainty among prospective whistleblowers operating in markets subject to both agencies’ jurisdiction.”

Comments are due within 30 days of Federal Register publication of this notice.

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