CFTC's Crypto Regulatory Framework May Be Delayed Until Early 2028

The proposed rulemaking notice for crypto platforms released by the CFTC last week is seen as a positive step, but the agency is not expected to complete the rulemaking until early 2028. Jaret Seiberg, managing director of the TD Cowen Washington research group, pointed out that as the 2028 election cycle approaches, there is a risk that the relevant rules may not be implemented. Seiberg anticipates that the CFTC will issue proposals as early as the end of the first quarter or the beginning of the second quarter of 2027, with final rules likely not being finalized until early 2028. The proposed rules require platforms to maintain proof of reserves audits and grant the CFTC jurisdiction over state-licensed platforms, but do not involve direct jurisdiction over spot market trading. He also noted that if the CFTC accelerates the rulemaking process, it could increase the risk of courts blocking the rules on procedural grounds, with related legal challenges potentially extending beyond 2028.

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