CFTC’s leveraged crypto framework may run out of runway before 2028, TD Cowen warns

The Commodity Futures Trading Commission has started building a federal home for leveraged retail crypto trading. TD Cowen thinks the construction schedule may not beat the 2028 election cycle. That matters because rules written by an agency can be rewritten by that agency. If the political winds shift before the framework is finished, the whole project could be reopened or shelved. What the CFTC actually proposed On October 5, 2026, the CFTC issued an advance notice of proposed rulemaking, or ANPRM. The notice asks the public to weigh in on a tailored federal framework for retail commodity transactions in crypto assets that involve leverage, margin, or financing. The proposal has two main pieces. The first is Regulation CTX, which aims to spell out which transactions fall under CFTC authority via Section 2(c)(2)(D) of the Commodity Exchange Act. The second piece is Regulation CAM. It would carve out a specialized “crypto asset markets” category within designated contract market registrations, giving platforms offering leveraged crypto products a dedicated lane to operate under federal oversight. None of this is binding yet. The ANPRM opens a 60-day comment period once it appears i...