The U.S. Commodity Futures Trading Commission will reorganize its Division of Enforcement's task forces to end "regulation by enforcement" and instead focus on combating fraud and helping victims, CFTC's acting chairman said on Tuesday.

The CFTC has restructured its enforcement division into two streamlined task forces, marking an end to the "regulation by enforcement" approach and shifting focus to fraud prevention.

According to the CFTC’s announcement, the new structure will “more efficiently utilize the CFTC’s resources to prevent fraud, manipulation and abuse and ensure market integrity” as well as “provide enhanced governance and oversight of enforcement matters to prevent overreach and enhance consistency, fairness and due process.”

The derivatives market regulator is reorganizing its enforcement division in a move it said will end the practice of regulation by enforcement.

The Commodity Futures Trading Commission (CFTC) is set to announce a restructuring of its enforcement division to halt the practice known