The Commodities Futures Trading Commission (CFTC) awarded only two whistleblowers in FY 2025, a marked decrease from the twelve whistleblower awards the agency made in 2024. This is the fewest whistleblower awards the CFTC has granted since 2016 and has sparked concern among whistleblower advocates that the CFTC’s recent practices may hinder its enforcement efforts in years to come.
When investigating violations of the Commodities and Exchange Act (CEA), the statute under which the CFTC regulates misconduct, whistleblowers play a crucial role by alerting the Commission to instances of criminal economic activity. According to a 2023 statement by CFTC Commissioner Romero, “the CFTC could not fully protect customers and markets without whistleblowers,” who were essential to collecting over $3 billion in sanctions. According to the CFTC’s 2024 annual report, 42% of the CFTC’s enforcement matters involve whistleblowers, who aided in collecting around $162 million in monetary sanctions in 2024.
Research corroborates this statement, detailing how a financial rewards system is essential for an effective whistleblower program. For example, a 2024 report by the Royal United Services Institute found that monetary incentives increase the likelihood a crime will be reported and deter future crime. People are less likely to commit fraud if they are aware of the financial consequences and the potential for an insider to get rewarded for speaking out against the company.
Under the Dodd-Frank Act, CFTC whistleblowers are eligible to receive 10% to 30% of monetary sanctions collected in an enforcement action for which they provided original information. The law gives the commission discretion in determining eligibility but requires it to provide awards proportionate to the assistance whistleblowers provided. Dodd-Frank has proved an effective tool for incentivizing whistleblowing, resulting in over $2 billion in total awards as of 2023.
If the CFTC continues to deny rewards to whistleblowers this year, these benefits will be unrealized. Without an economic incentive, insiders are less likely to speak out because of the high risks — career loss and social stigma — associated with whistleblowing. A reduction in whistleblower reports could undermine the CFTC’s goals, making economic crime harder to uncover. Advocates worry that failing to grant awards to more whistleblowers could undermine the agency’s regulatory functions by discouraging insiders from coming forward with knowledge of commodities fraud.
