President Biden has signed into law legislation passed by Congress in June that would temporarily set up a new account to fund operations of the Commodity Futures Trading Commission’s (“CFTC”) whistleblower program.   

The CFTC’s whistleblower program, created as part of the 2010 Dodd-Frank Act, is funded by money the agency collects in enforcement penalties.  Prior to the enactment of this new legislation, the fund could only be replenished when it falls below $100 million.  A recent $2.5 billion enforcement action that was spearheaded by a whistleblower, however, has led to uncertainty about whether the fund could remain solvent after what is expected to be a whistleblower reward of more than $100 million. 

Under the new law, the CFTC will be able to transfer funds into a separate Treasury Department account to pay for operating and programming expenses when the balance in the main whistleblower fund is insufficient.  After October 1, 2022, any remaining money in the separate treasury account will be returned to the main fund.  

Under the CFTC’s whistleblower program, eligible whistleblowers are entitled to between 10% and 30% of monetary penalties collected.  The agency has awarded roughly $123 million to whistleblowers since issuing its first award in 2014. 

Click here to read more about the new law. 

Click here to learn more about G&G’s leading whistleblower practice.