Will the CFTC be fast enough to draft new crypto rules?

00:00 Speaker A

CFTC's new crypto framework could face 2028 election deadline, says TD Cowen. as if that's a guy.

00:08 Speaker A

I love when we're like, JP Morgan says. And you're like, dude at a desk who's employee number 27,000 made a comment on email.

00:16 Speaker A

But this is Jaret Seiberg, a managing director at TD Cowen's Washington Research Group, said the CFTC's advanced notice of proposed rule making likely won't be finished until early 2028.

00:27 Speaker A

But this is a notable story because we've talked about after the failure of the Clarity Act, the fact that the regulators are stepping in and attempting to write rules that will give clarity to the industry going forward, pun absolutely intended, saying clarity there.

00:41 Speaker A

But that doesn't mean that even if they start writing these rules that they will go into effect anytime soon. They're basically saying a formal proposal could arrive in late first quarter or early second quarter 2027 with finalization potentially taking until early 2028.

00:58 Speaker A

That's a really long time from now to get clear rule making on what exchanges and institutions can do with crypto, custody and leverage and all the things that the CFTC would be overseeing in this case.