Equity Perpetuals Push: SEC and CFTC Coordination Urged
The Blockchain Association has filed formal comments urging the SEC and CFTC to coordinate on regulating equity perpetuals—perpetual futures tied to equities that never expire. The goal is to create an onshore US framework for products that currently see heavy overseas trading volume but are effectively barred from US venues.
In its Aug. 25 submission, the group says the agencies should adapt the existing joint security futures framework rather than write new rules. It also calls for a “technology-neutral, outcomes-based approach,” meaning regulation should focus on what the derivative does, not the blockchain or platform behind it.
Equity perpetuals track spot prices via funding rates, and a long-running jurisdictional dispute—SEC oversight of securities vs CFTC oversight of derivatives—has left a regulatory gap. Industry participants argue this gap pushes US traders toward offshore exchanges, typically with weaker investor protections and transparency.
The filing is part of a broader coordinated push. The Hyperliquid Policy Center submitted comments on Aug. 24 citing over $480B notional trading volume on its HIP-3 markets. Coinbase also submitted similar feedback, reinforcing the industry’s united stance as regulators solicit input on how to handle perpetual contracts.
Market significance: any movement toward a joint framework could reduce reliance on offshore venues and potentially improve compliance clarity for crypto-derivatives traders. The CFTC has recently shown some openness to certain perpetual structures, which may make near-term regulatory headlines more relevant for derivatives positioning.
Bullish
This is mildly bullish for crypto derivatives because it targets a key friction point: equity perpetuals. If the SEC and CFTC converge on a joint framework, US traders may eventually gain more compliant onshore access, reducing the current incentive to route liquidity offshore.
In the short term, the impact is likely headline-driven rather than immediate venue listings; such rulemaking and coordination usually takes time. Still, the explicit “technology-neutral, outcomes-based” framing could broaden eligibility and lower uncertainty for exchanges and market makers.
In the long term, clearer jurisdictional boundaries tend to support deeper liquidity and more stable derivatives markets. Similar dynamics have appeared in past regulatory coordination efforts globally, where harmonized oversight typically reduces compliance risk premiums and encourages institutions to participate—often tightening spreads and improving risk management.
Key watchpoints for traders: progress in SEC/CFTC feedback on perpetuals, any draft criteria for equity perpetuals, and whether market makers shift volumes back onshore versus continuing offshore dominance.