Blockchain Association Urges SEC and CFTC to Coordinate on Equity Perpetuals

Blockchain Association urges the SEC and CFTC to coordinate on regulatory rules for equity perpetuals and U.S. markets.

The Blockchain Association has filed comments urging the U.S. Securities and Exchange Commission and Commodity Futures Trading Commission to coordinate on the regulatory treatment of equity perpetuals, arguing that clearer rules could help move activity currently conducted offshore into U.S. markets.

The position was outlined in information shared on X and centers on regulatory coordination between the two agencies. The organization said a clearer framework for equity perpetual products could provide a pathway for offshore market activity to be brought onshore.

Blockchain Association Calls for Regulatory Coordination

The Blockchain Association's comments focus on the need for the SEC and CFTC to work together when addressing equity perpetuals. The products can raise regulatory questions because their characteristics may overlap with areas overseen by both securities and derivatives regulators.

The SEC generally oversees securities markets and securities-related activities in the United States, while the CFTC has authority over commodity derivatives, including futures and certain swaps. Products that combine features associated with different financial markets can therefore create questions about which regulatory requirements apply.

The association's submission calls for the agencies to coordinate rather than approaching the market through separate or potentially conflicting regulatory frameworks. The comments suggest that greater clarity could make it easier for market participants to understand the requirements for offering and trading equity perpetuals in the United States.

The original information did not provide details on specific regulatory changes proposed by the Blockchain Association or identify particular equity perpetual products affected by the comments.

Offshore Equity Perpetual Markets in Focus

Equity perpetuals are derivatives designed to provide exposure to the price movements of an underlying asset without a traditional fixed expiration date. Their structure distinguishes them from conventional futures contracts, which generally have specified settlement dates.

The products have also been offered in markets outside the United States. The Blockchain Association's comments indicate that some activity involving equity perpetuals currently takes place offshore.

According to the position shared on X, clearer U.S. rules could help bring that activity into domestic markets. The argument reflects a broader regulatory question facing digital asset and financial markets: how U.S. rules can accommodate emerging products while maintaining appropriate oversight and investor protections.

The comments do not establish that offshore activity would automatically move to the United States if new rules were adopted. Instead, the association is advocating for regulatory clarity as a potential mechanism for supporting onshore market development.

SEC and CFTC Roles Could Be Significant

Coordination between the SEC and CFTC could be important for products whose characteristics cross traditional regulatory boundaries. Market participants often face different requirements depending on whether an instrument is classified as a security, commodity derivative or another financial product.

The Blockchain Association's request places the two agencies at the center of the discussion over how equity perpetuals should be regulated in the United States. A coordinated approach could give market participants greater visibility into applicable requirements, although the comments themselves do not guarantee that either agency will adopt the association's recommendations.

The submission also comes as U.S. regulators continue to address new forms of financial products connected to digital assets and broader electronic markets. Regulatory treatment remains a key consideration for companies seeking to offer innovative trading products to U.S. customers.

For the Blockchain Association, the central issue is the creation of a framework that allows equity perpetual markets to operate under clear U.S. rules. Its comments argue that coordination between the SEC and CFTC could help establish such clarity and potentially encourage market activity that currently takes place offshore to move into the domestic regulatory environment.

The agencies will determine independently how to respond to the issues raised in the filing. The information currently available does not indicate when further regulatory action on equity perpetuals may occur.

writer: Ethan Collins
Crypto Journalist
Ethan Collins reports on developments across the cryptocurrency and blockchain sector. His work covers market movements, protocol updates, regulatory changes, and emerging trends in digital assets.
He focuses on presenting complex topics in a clear and accessible manner for a broad readership.