The Commodity Futures Trading Commission (CFTC) has proposed a new rule to accelerate the payment of whistleblower awards, particularly for smaller claims. Under the new proposal, successful whistleblowers whose awards would be $5 million or less will presumptively receive 30% of any penalties collected. This change is designed to reduce the time agency attorneys spend on these cases, allowing for faster processing of claims.
This proposed rule, outlined in a Notice of Proposed Rulemaking, aims to improve the efficiency, transparency, and predictability of whistleblower award claims processing. The CFTC noted that approximately 82% of its awards since the program's inception have been $5 million or less. The agency expects this new provision to align its processes with the Securities and Exchange Commission’s (SEC) whistleblower program, which has a similar rule and has seen improved efficiency since its implementation. Chairman Michael S. Selig stated that prompt and transparent processing of whistleblower claims is critical and that this step enhances harmonization with the SEC.
The current practice involves CFTC staff reviewing all whistleblower awards and determining an exact percentage between 10% and 30% of the underlying settlement amount based on the helpfulness of the tip. For awards exceeding $5 million, this detailed review process will remain. However, for awards of $5 million or less, the 30% presumption means that CFTC staff will not need to conduct an extensive review unless there are clear and compelling circumstances to warrant a lower payout. This shift is expected to free up resources to focus on more complex, larger awards.
The new rule, modeled on the SEC’s rule 21F-6(c), also outlines conditions under which the 30% presumption could be overridden. These include instances where a claimant was culpable or involved in the violation, unreasonably delayed reporting, or if the CFTC determines the 30% award would be inappropriate due to limited assistance or other public interest considerations. Since its inception, the CFTC’s whistleblower program has contributed to over $3.2 billion in sanctions and has awarded whistleblowers more than $400 million, including over $8 million to five whistleblowers in June 2026 alone. This change is anticipated to further incentivize whistleblowing.
