The Commodity Futures Trading Commission (CFTC) is updating the rules for civil monetary penalties under the Commodity Exchange Act to account for inflation, as required by the Federal Civil Penalties Inflation Adjustment Act. This update adjusts the maximum fines for violations based on the change in the Consumer Price Index. The new penalties will apply to violations assessed after January 15, 2025. This rule aims to ensure penalties remain effective as deterrents over time and doesn’t require the standard notice and comment process normally needed for new regulations.
Simple Explanation
The CFTC is making sure the fines for breaking rules keep up with inflation, like how things cost more over time, to make sure they still work as punishments. Starting January 15, 2025, the new, higher fines will be used.