Key facts
- The SEC and CFTC are seeking public input to clarify and harmonize derivatives product definitions.
- The request addresses definitions of swaps, security-based swaps, mixed swaps, and emerging products.
- This initiative aims to resolve ambiguities in Title VII of the Dodd-Frank Act.
- CME has sued the CFTC over its approval of crypto perpetual futures, arguing they are swaps.
- The lawsuit follows the CFTC's approval of Kalshi's crypto perpetual futures.
The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have jointly initiated a request for public comment to clarify and harmonize the definitions of derivatives products. This move is intended to address long-standing ambiguities within Title VII of the Dodd-Frank Act, which regulators believe have hindered fair competition and innovation.
The financial regulators are seeking input on how to define and regulate swaps, security-based swaps, mixed swaps, and emerging products, particularly those linked to cryptocurrencies. They also aim to clarify regulatory definitions, alternative compliance pathways, and jurisdictional questions.