The Securities and Exchange Commission and Commodity Futures Trading Commission have launched a joint review of crypto derivatives regulations, opening a 60-day public comment period following the approval of U.S. crypto perpetual futures.
Summary
- SEC and CFTC have opened a 60-day public consultation on harmonizing crypto derivatives and portfolio margining rules.
- The review follows the approval of U.S. crypto perpetual futures and covers risk management and regulatory coordination.
- The consultation comes as the CFTC faces legal disputes over crypto perpetual futures and prediction market oversight.
According to a joint press release, the SEC and CFTC have requested public comment on possible ways to better align portfolio margining requirements across securities, security-based swaps, futures, swaps, and related positions.
The agencies said comments will remain open for 60 days after the proposal is published in the Federal Register.
Regulators seek feedback on derivatives oversight
As outlined by the two regulators, the review will help determine whether closer coordination on portfolio margining could improve risk management, reduce market fragmentation, and strengthen consumer protections. The request comes as crypto derivatives and tokenized financial products continue to expand in the United States.
The consultation follows the recent launch of regulated crypto perpetual futures. Kalshi received CFTC approval to list perpetual futures tied to Bitcoin, Ether, XRP, and HYPE, while platforms such as Hyperliquid have also expanded access to perpetual products linked to tokenized securities.
SEC Chair Paul Atkins said better coordination between the agencies can prevent overlapping regulatory responsibilities from slowing innovation or reducing market efficiency.
“Cross-margining offers a clear opportunity to unlock liquidity that remains frozen in separate accounts, and we encourage market participants to provide feedback on ideas that will help improve coordination between both agencies.”
CFTC Chair Michael Selig also supported the initiative, saying closer cooperation on portfolio margining “promises to unleash untapped capital while ensuring a more robust risk management framework and market protections.”
Earlier this week, the agencies separately asked the public to comment on how U.S. rules define swaps, security-based swaps, and related derivatives under Title VII of the Dodd-Frank Act.
According to the SEC and CFTC, market structure and trading practices have changed since those rules were first adopted, prompting questions about whether existing definitions still match today’s derivatives markets.
The earlier consultation also seeks feedback on swap exclusions, mixed swaps, jurisdictional issues, alternative compliance, and new financial products. According to the agencies, the responses will help build a common regulatory record that could guide future staff interpretations and court proceedings.
Court disputes continue over crypto derivatives
The latest consultation arrives as the CFTC faces multiple legal disputes tied to crypto derivatives and prediction markets.
Earlier this week, the CFTC sued Kentucky in federal court after the state sought to enforce its gaming laws against prediction market operators, including Kalshi and Polymarket. The regulator argued that the Commodity Exchange Act gives it exclusive authority over federally regulated futures, options, and swaps, while Kentucky maintains that sports-linked event contracts should remain subject to state gambling laws.
At the same time, CME Group continues its legal challenge against the CFTC over the approval of crypto perpetual futures.
As previously reported by crypto.news, CME argues that Kalshi’s perpetual crypto contracts should be regulated as swaps rather than traditional futures and alleges that the regulator approved the products without following the framework established under Dodd-Frank.
The classification question has become increasingly important because swaps and futures follow different rules for clearing, reporting, execution, and regulatory oversight.
The SEC and CFTC’s parallel consultations on derivatives definitions and portfolio margining may help shape how future crypto products are supervised as new trading models continue to enter regulated U.S. markets.
