SEC and CFTC Seek Public Comment on Crypto Futures Margin Rules

TLDR

• The SEC and CFTC issued a joint request for public comment.
• The request covers portfolio margining across securities, swaps and futures.
• The public comment period will stay open for 60 days after publication.
• Agencies are seeking input on cross-margining and collateral treatment.
• The request follows U.S. approvals for crypto perpetual futures products.

The Securities and Exchange Commission and the Commodity Futures Trading Commission have issued a joint request for public comment on possible ways to harmonize regulatory frameworks for portfolio margining across securities, swaps, futures, and related positions.

The request comes as U.S. regulators continue coordinating on market structure issues affecting digital assets, derivatives, and tokenized financial products. The agencies said the comment process will help them assess whether greater alignment in margin rules could improve risk management, reduce market fragmentation, and strengthen customer protections.

The public comment period will remain open for 60 days after the request is published in the Federal Register. The agencies are seeking feedback from market participants, clearing organizations, investors, intermediaries, and other stakeholders affected by securities and derivatives margin requirements.

Agencies Review Portfolio Margining Frameworks

The SEC and CFTC said the request covers regulatory frameworks that apply to portfolio margining across securities, security-based swaps, futures, swaps, and related positions. Portfolio margining allows risk to be measured across multiple positions, rather than treating each account or product separately.

The agencies are seeking input on existing margining models, customer protection rules, cross-margining arrangements, capital treatment, segregation requirements, collateral use, and risk management methodologies. They are also asking for views on operational and technical challenges tied to implementing more coordinated systems.

Cross-margining and cross-product offsets are among the main topics in the request. These arrangements can allow firms and customers to use related positions to reduce total margin requirements when risk exposures offset each other, subject to clearinghouse and regulatory safeguards.

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The agencies said the review is intended to determine whether current rules create unnecessary separation between markets overseen by different regulators. The SEC regulates securities and security-based swaps, while the CFTC regulates futures, swaps, prediction markets, and other derivatives markets.

Crypto Perpetual Futures Add Regulatory Focus

The joint request arrives shortly after the approval and launch of crypto perpetual futures in the United States. Kalshi secured CFTC approval to offer perpetual futures tied to assets including Bitcoin, Ethereum, XRP, and HYPE.

The products have drawn attention because crypto perpetuals are widely traded outside the United States and are now entering regulated U.S. markets. Their launch has increased discussion over how futures, swaps, and security-based derivatives should be treated when products involve digital assets or tokenized financial instruments.

The request also comes as tokenized securities and blockchain-based trading products expand. Platforms such as Hyperliquid have offered perpetual contracts linked to tokenized assets, increasing the need for regulators to assess how traditional derivatives rules apply to onchain markets.

The CFTC is also facing a lawsuit from CME Group over its approval of crypto perpetual futures. CME has argued that crypto perpetual products should be classified as swaps rather than futures contracts and that the approval process was handled incorrectly.

Kalshi’s crypto futures products have reportedly attracted strong early demand, with more than $1 billion in trading volume recorded in less than two weeks after launch. That activity has added urgency to questions about margining, clearing, collateral, and risk controls for digital asset derivatives.

SEC and CFTC Chairs Support Coordination

CFTC Chairman Michael S. Selig said stronger cooperation between the CFTC and SEC on portfolio margining could unlock capital while supporting risk management and market protections. He said the agency looks forward to reviewing stakeholder feedback as financial markets evolve.

SEC Chairman Paul S. Atkins said harmonizing the agencies’ frameworks can help ensure that overlapping jurisdiction does not limit innovation or efficiency. He said cross-margining could unlock liquidity that remains separated across accounts and encouraged market participants to provide feedback.

The agencies said the request will examine potential effects on market liquidity and competition, as well as clearing agency and derivatives clearing organization considerations. These issues are relevant for firms operating across securities and derivatives markets, including those offering digital asset products.

The request is the latest sign of joint SEC-CFTC work on market rules involving derivatives and crypto. The two agencies have also been working to clarify definitions for swaps, security-based swaps, and related products.