The CFTC followed on October 5, seeking feedback on rules for leveraged retail crypto trading and a new registration category for crypto markets. That starts a lengthy public comment and rulemaking process, rather than putting rules into effect.
Meanwhile, the SEC’s October 1 custody proposal would let state trust companies safeguard client crypto and allow advisers and funds to hold it themselves under certain conditions.
Looking into 2027, Breydo said he expects the SEC to focus on completing offering and custody rules and building on its tokenized-stock exemption. He sees the agencies’ March joint interpretive release as an important foundation, superseding earlier guidance and allowing coordination within existing law.
But a key gap remains: ordinary, unleveraged spot trading still lacks comprehensive federal oversight, beyond the CFTC’s anti-fraud and anti-manipulation powers. Closing that gap was a central goal of Clarity.
More activity, sooner
For some executives, the legislative setback could produce faster commercial opportunities.
“The SEC and CFTC are already moving proactively to provide the regulatory certainty markets need, and that’s unlocking a wave of M&A across digital assets, traditional financial services, and fintech alike,” said Paul McCaffery, head of digital assets at investment bank KBW.
Bitwise Chief Investment Officer Matt Hougan said he sees the agency approach as more favorable in the short term than legislation that would have required years of follow-up rulemaking. He also expects more protocols to adopt token buybacks, particularly buy-and-burn models, following SEC clarification he said gives investors greater confidence.