SEC and CFTC seek public feedback on modern derivatives definitions

**SEC and CFTC Seek Public Input on Redefining Derivatives**

The **SEC** and **CFTC** have launched a joint request for public comment on whether current US derivatives definitions — including swaps, security-based swaps, mixed swaps, and novel products — still fit the instruments now entering the market (SEC release).

The 60-day comment window opens upon Federal Register publication.

This comes amid a legal dispute over perpetual futures. **CME Group** is suing the CFTC over its approval of perpetual futures-style contracts for event platforms like Kalshi and Coinbase, arguing they should be classified as swaps, not traditional futures.

For crypto, the stakes are high. Classification dictates:
- Which venues may offer the product
- Clearing and reporting obligations
- Retail and institutional market access

Perpetual contracts — central to offshore crypto trading — could face different rules if labeled swaps rather than futures, impacting onshore market economics.

Agencies stress their review covers the broader derivatives framework, not just crypto, yet perpetuals remain one of the markets most exposed.

The process allows exchanges, trading firms, crypto platforms, and investor advocates to influence future regulatory interpretation. If definitions become clearer, regulated US venues may attract more onshore crypto derivatives activity. If not, fragmented approvals and court battles will persist.

**Next step:** Submit feedback within the 60-day window. This reclassification debate will shape the US crypto derivatives landscape.