Bloomberg is reporting today that Gary Gensler the the CFTC will consider temporarily exempting swaps from Dodd-Frank implementation this July. In a letter sent to Republican Senators Pat Roberts, Richard Lugar, and Saxby Chambliss, Gensler explained that it will only be temporary relief.“The proposed relief would make it clear that, though the law will have changed, as a practical matter, the market will have relief during the period of the exemption,” the letter said.
The SEC also announced last Friday that it intended to delay the implementation of many of its proposed rules pending further debate and finalization. As the Dodd-Frank deadline approaches, many lawmakers have voiced their concern over the mounting pile of unfinished rules. This temporary relief is a far cry from the extreme measures proposed in the House, which would have delayed Dodd-Frank implementation until December of 2012. This action, which it will delay badly-needed reforms, should ensure that the new regulations do more harm than good.