A first step in the federal rulemaking process is exactly that: an opening move, not a final rule. Agencies like the CFTC typically begin with a formal notice, an advance rulemaking proposal, or a request for information before any enforceable regulation takes effect. That initial document sets the scope, triggers a public comment period, and invites industry and legal challenge before a word of the final rule is written. For related coverage, see Trump Signs First U.S. Crypto Law Repealing IRS Rule.
The gap between “first step” and “final rule” is where regulations get shaped, softened, or shelved. Comment periods run weeks to months. Proposed text can be revised substantially based on industry feedback. A rule that enters the pipeline aggressive can exit it narrow.
Where the CFTC’s Rulemaking Power Comes From
The CFTC derives its authority from the Commodity Exchange Act, which gives it jurisdiction over derivatives markets and, more recently, certain digital asset trading activity. Any new regulation issued under that authority must survive the Administrative Procedure Act’s notice-and-comment requirements before it can be enforced.
That process has already been underway in several related areas. The agency has proposed crypto rules under the CTX and CAM frameworks, and separately filed a new rulemaking specifically on crypto asset transactions. Each of those actions followed the same first-step logic: announce intent, invite response, revise, finalize.
What Comes Next Determines Everything
The next milestone in any CFTC rulemaking is the publication of proposed rule text in the Federal Register, which starts the official comment clock. Affected firms, exchanges, legal groups, and the public can all submit written responses. Those comments become part of the administrative record the agency must address before issuing a final rule.
The CFTC has also demonstrated that rulemaking can travel beyond its own building. Earlier in this regulatory cycle, the agency sent proposed crypto rules to the White House for review, a step that signals when an administration wants visibility into the process before enforcement begins.
Jurisdiction itself has also been contested. The agency is currently in litigation over prediction markets jurisdiction, a reminder that even formal CFTC rules face legal resistance before they bind anyone.
The first step is the least controversial part. The question is what the agency puts in writing next, and whether the industry or Congress moves to stop it before it gets there.
Additional source references: source document 1.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
