The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have launched a joint consultation to gather public feedback on how digital asset derivatives should be classified, regulated, and supervised. This move comes after CME Group issued a litigation warning regarding the approval of Kalshi's Bitcoin perpetual contracts, indicating that U.S. regulators are re-examining whether existing rules still apply to new products.
The consultation focuses on the definition of derivatives.
On June 18, the two agencies released a joint document focusing on whether the definitions of various products under Chapter VII of the Dodd-Frank Act need to be updated. The consultation scope includes swaps, security swaps, hybrid swaps, event contracts, and new trading products that have emerged rapidly in recent years.
SEC Chairman Paul Atkins stated that the relevant definitions have long been unclear, especially for event-related products. CFTC Chairman Mike Selig also stated that the existing ambiguities have caused confusion for regulatory enforcement and market participants, and have stifled fair competition and compliant innovation.
The public comment period is 60 days.
The regulator stated that the public comment period will last 60 days after the document is published in the Federal Register. The goal of this process is to determine whether the current definitions still reflect current financial product structures and trading practices.
Judging from the statements, regulators are not focusing solely on a single platform or contract, but rather attempting to use this opportunity to re-evaluate how digital asset derivatives are classified within the US regulatory framework. This means that subsequent discussions may not only affect Bitcoin perpetual contracts, but could also impact other event-driven or more complex products.
The dispute between CME and Kalshi intensifies
Less than a day before this joint consultation was released, CME CEO Terry Duffy announced plans to file a lawsuit against the CFTC for approving Kalshi's launch of Bitcoin perpetual futures. CME's core argument is that such products do not meet the legal definition of "futures" under the Dodd-Frank Act.
According to Duffy, if the relevant products are closer to "swaps," then a different set of regulatory requirements should apply, including different participation thresholds and compliance rules. Therefore, this controversy is no longer just an isolated case involving the Kalshi platform, but extends to the question of how the United States defines crypto derivatives, who has the authority to approve them, and what regulatory path applies.
- Joint consultation release date: June 18
- Public comment period: 60 days after publication in the Federal Register
- The crux of the dispute: Should Kalshi Bitcoin perpetual contracts be classified as futures or swaps?
