CFTC, SEC request public comment to clarify definition of 'swaps' amid CME lawsuit

CFTC AND SEC OPEN PUBLIC COMMENT AS CME LAWSUIT FORCES REGULATORY SHOWDOWN OVER CRYPTO DERIVATIVES

CME Group has filed a lawsuit against the CFTC after the regulator classified perpetual futures as futures contracts rather than swaps — a distinction with major legal and commercial implications for crypto derivatives markets. In response, both the CFTC and SEC have opened a public comment period to clarify the definition of "swaps," signaling that regulators are being forced to draw clearer lines around a product class that has exploded in crypto trading volume. The outcome could reshape how perpetual futures — the most widely traded instrument in crypto — are regulated, margined, and offered to U.S. market participants.

What analysts are saying: The classification battle matters enormously for exchanges and traders alike, as swaps face stricter oversight requirements under Dodd-Frank than futures contracts — meaning a reclassification could trigger compliance overhauls and potentially restrict retail access to perps on U.S.-facing platforms.

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