The U.S. Commodity Futures Trading Commission (CFTC) Acting Chair Caroline Pham stated on Tuesday that the regulatory agency has reorganized its enforcement division to “refocus” on fraud and end the practice of regulation through enforcement.

Under former Chairman Rostin Behnam, the CFTC’s enforcement division consisted of several task forces, including those targeting insider trading and cybersecurity. This new reorganization reduces the number of task forces to two:

• Complex Fraud Task Force: Charged with addressing enforcement from inquiries to litigations concerning complex fraud across all asset classes, led by Paul Hayeck.
• Retail Fraud and General Enforcement Task Force: Tasked with handling retail fraud and general enforcement, directed by Charles Marvine.

Pham remarked, “This simplified structure will stop regulation by enforcement and is more efficient.”

The CFTC aims to maximize its resources to target fraudsters while avoiding punitive actions against law-abiding citizens. This strategic shift mirrors changes at the U.S. Securities and Exchange Commission (SEC) under Acting Chair Mark Uyeda, who has also established a Crypto Task Force while moving away from the enforcement-focused strategy.