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Saturday, May 2, 2026

US regulator seeks whistleblower tips on carbon markets misconduct - Reuters.com

June 20 (Reuters) - The U.S. Commodity Futures Trading Commission (CFTC) said on Tuesday it was seeking tips from whistleblowers on potential violations of Commodity Exchange Act (CEA) connected to fraud in carbon markets.

The derivatives markets regulator said it would work with whistleblowers who report on potential fraud in carbon markets such as manipulative trading, fraudulent statements relating to terms of carbon credits and potential manipulation of tokenized carbon markets.

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Carbon markets are trading systems in which carbon credits are bought and sold. These credits are the underlying commodity for futures contracts that are listed on CFTC-designated contract markets.

"Information from whistleblowers advances the Commission's enforcement mission and, in turn, further builds integrity and trust in the carbon markets by rooting out fraud and manipulation," CFTC Chairman Rostin Behnam said in a statement.

The whistleblowers could be eligible for certain confidentiality and anti-retaliation protections, as well as monetary awards if their information leads to enforcement action, the CFTC added.

Behnam said in January that the CFTC had the power to investigate suspected fraud and manipulation in spot markets if a tipster came to the agency with evidence of misconduct.

U.S. senators, led by Cory Booker and Elizabeth Warren, urged the CFTC last October to take concrete steps for governing the voluntary carbon offsets market.