SEC, CFTC Seeks Public Comment On Harmonized Framework For BTC, ETH, XRP Futures

The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have jointly called for public comment on their approach to harmonizing regulatory frameworks for crypto futures. The proposed public comment on the SEC CFTC framework comes amid the recent approval of crypto perpetual futures in the U.S.

Calls For Public Comment On SEC CFTC Framework

In a press release, the SEC and CFTC issued a joint request for public comment on potential approaches to further harmonize regulatory frameworks applicable to portfolio margining across securities, security-based swaps, futures, swaps, and related positions. The public comment period will remain open for 60 days after the publication in the Federal Register. This is significant as the CFTC notably regulates prediction markets, which trade swaps.

Furthermore, this follows the launch of crypto perpetual futures in the U.S., with Kalshi securing CFTC approval to offer BTC, ETH, XRP, and HYPE futures. The request for public comment on the SEC CFTC framework also comes amid the rise in tokenized securities, with platforms such as Hyperliquid offering perpetuals for these securities.

The SEC and CFTC noted that the request for comment will assist them in evaluating whether greater coordination or alignment in portfolio margining requirements may improve risk management efficiency, reduce unnecessary market fragmentation, and enhance consumer protections.

Meanwhile, this marks the latest coordination between the SEC and CFTC towards providing clear frameworks that boost the crypto and financial markets. As CoinGape reported, the SEC and CFTC are pushing to clarify the definitions of derivative products, including definitions of swaps and security-based swaps, and how to treat them.

A Move To Further Promote Innovation

SEC Chair Paul Atkins noted that further harmonizing the SEC CFTC framework will ensure that jurisdictional overlap does not stifle innovation and 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,” he said.

Commenting on this move, CFTC Chair Michael Selig said that fostering enhanced cooperation between the two agencies on portfolio margining promises to unlock untapped capital while ensuring a more robust risk management framework and market protections. The CFTC is currently facing a lawsuit from the CME over its approval of crypto futures.

The CME argues that crypto perpetuals are swaps, not futures contracts, and that the regulator approved these products the wrong way. These crypto futures are already seeing significant demand, with Kalshi’s products recording over $1 billion in trading volume in under two weeks after they launched.