The U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission have jointly requested public comment on the legal definitions of swaps, security-based swaps, mixed swaps, and emerging derivatives products. The 60-day comment period, announced days after CME Group sued the CFTC over its treatment of crypto perpetual futures, could reshape the regulatory landscape for Bitcoin perpetuals, prediction markets, and novel derivatives.
The request focuses on Title VII of the Dodd-Frank Act, which split oversight of the swaps market between the two agencies. The CFTC and SEC are asking market participants whether current definitions still align with modern trading practices, seeking input on swap exclusions, jurisdictional questions, alternative compliance paths, and new products such as event contracts. CFTC Chair Michael Selig said the initiative could address “longstanding ambiguities” in the law, while SEC Chair Paul Atkins called clarification “long overdue,” particularly for event-based products.
The comment period directly intersects with a lawsuit filed by CME Group, which argues that Kalshi’s Bitcoin perpetual futures should be regulated as swaps, not as traditional futures. CME contends the CFTC bypassed Dodd-Frank requirements when approving Kalshi’s contracts, creating an unfair path for rivals. Kalshi’s Bitcoin perpetuals were allowed to remain listed under existing futures rules, and the platform has since expanded into other crypto-linked perpetual products. Coinbase has also received permission to list long-dated “perp-style” futures on Bitcoin and Ether, while Kraken plans to launch crypto perpetuals on Kraken Pro.
At the center of the debate is the American Perpetuals Exchange Corporation, which raised $30 million at a $300 million valuation in a round led by Lux Capital. Led by Theodore Gillibrand—son of crypto-friendly New York Senator Kirsten Gillibrand—APEC intends to file for a Designated Contract Market license and a Derivatives Clearing Organization license. The startup aims to build the first regulated U.S. venue for single-name equity perpetual futures under joint SEC-CFTC oversight, arguing that the absence of a domestic venue merely redirects demand to offshore platforms beyond U.S. regulatory reach. A June 4 memo logged meetings with SEC and CFTC officials and emphasized that the licensing process is capital-intensive, with funds allocated to regulatory capital, compliance infrastructure, and legal buildout.
The outcome of the CFTC-SEC harmonization effort will determine whether perpetuals are treated as futures—allowing a clearer path through the DCM framework—or as swaps, triggering stricter clearing, reporting, and risk requirements. For crypto markets, the definitional battle directly affects Bitcoin perpetuals on Kalshi and similar products on other platforms, while also setting precedents for prediction markets and other novel contracts. With CME’s lawsuit and the public comment period now running in parallel, the response from industry and legal experts could influence how regulators draw jurisdictional lines for years to come.
