TD Cowen Says CFTC Crypto Leverage Rules May Not Be Finalized Before 2028 Election

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The U.S. Commodity Futures Trading Commission’s effort to regulate leveraged cryptocurrency trading may not be finalized before the 2028 presidential election.

The Block reported on Oct. 12 that Jarrett Seiberg, managing director at TD Cowen’s Washington Research Group, said in a note that the CFTC’s work on new rules will probably take longer than expected. “There is not much time left,” he wrote, adding that a proposed rule could emerge as early as late in the first quarter of 2027 or early in the second quarter, while final adoption may be pushed back to early 2028.

The CFTC last week began drafting rules to oversee leveraged and margined crypto trading by retail investors at the federal level. The plan is expected to include proof-of-reserves audit requirements for trading platforms and CFTC supervisory authority over businesses licensed by state regulators. At the same time, the agency is trying to avoid seeking direct jurisdiction over the broader spot crypto market.