CFTC Leverage Framework Faces Uncertain Future by 2028

Introduction

The Commodity Futures Trading Commission has started building a federal home for leveraged retail crypto trading, but TD Cowen warns that the construction schedule may not beat the 2028 election cycle.

The Proposed Framework

The CFTC issued an advance notice of proposed rulemaking, or ANPRM, on October 5, 2026, which 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: Regulation CTX, which aims to spell out which transactions fall under CFTC authority, and Regulation CAM, which would carve out a specialized 'crypto asset markets' category within designated contract market registrations.

Concerns About Durability

TD Cowen's concern centers on durability, as analysts at the firm have flagged that agency rules are less stable than legislation passed by Congress. Future commissioners can modify agency rules or eliminate them outright.

The Need for Legislation

TD Cowen's warning effectively argues that the only durable fix is legislation, and until lawmakers revive something like the Clarity Act, agency action remains a provisional patch on a structural gap.

Implications for Exchanges and Traders

For crypto platforms hoping to offer leveraged products to US retail customers, the ANPRM is a genuine opening. Regulation CAM would create a registration path tailored to their business rather than forcing them into ill-fitting categories. Industry participants recognize the process could stretch into future election cycles, raising concerns about market clarity and investor confidence.