The Commodity Futures Trading Commission's enforcement division will end the practice of "regulation by enforcement," according to Acting Chair Caroline Pham.

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 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.

The U.S. Commodity Futures Trading Commission (CFTC) is reshuffling its approach to enforcement, and consolidating the division’s array of task forces into just two.

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.