US Regulators Seek Input on Derivatives Definitions Amid Crypto Perpetuals Uncertainty

The CFTC and SEC have opened a joint public comment process on derivatives product definitions, which could impact how crypto perpetual futures are treated in the US.

The agencies are seeking input on definitions under Title VII of Dodd-Frank, specifically regarding perpetual futures, which resemble futures contracts but have economic design that can overlap with swap-style exposure.

This ambiguity affects clearing, margining, venue approvals, and the competitive landscape between traditional futures exchanges and newer crypto-native venues.

CFTC Chairman Michael Selig stated that the request offers an opportunity to address ambiguities within Title VII of Dodd-Frank that have limited competition and innovation.