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US SEC and CFTC whistleblower programmes: record FY2024 tips and awards, crypto focus, actions against gagging clauses, and urgent reforms amid CFTC funding crisis and SEC award delays

Published on: 16 December 2024

Published by a Law360 reporter
Legal News
Article summary

A look at US SEC & CFTC’s record year for whistleblower awards

Through anonymous reporting routes, robust anti-retaliation protections and financial awards, the agencies have motivated whistleblowers to provide high-quality information on securities and commodities fraud, markedly reinforcing their enforcement efforts.

In late November 2024 and early December 2024, respectively, the SEC and CFTC whistleblower offices released their annual reports for the 2024 fiscal year. The documents show the programmes remain robust, attracting record numbers of whistleblower tips and distributing hundreds of millions of dollars to eligible individuals.

The reports also outline the chief areas of fraud being reported via the whistleblower programmes and highlight both agencies’ intensified moves to curb companies’ attempts to hinder whistleblower communications.

While the SEC and CFTC whistleblower programmes continue to be highly successful, legislative reform is still needed. The imperative is particularly acute for the CFTC’s programme, which is under threat from a funding crisis, due in part to its significant growth in recent years...

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