US regulators are revising rules for crypto derivatives: a new stage in the battle for the market
The U.S. Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) have initiated a public discussion on the definitions of swaps and other derivative instruments. This is a direct signal that American regulators intend to adapt legislation to the realities of the modern crypto market, where perpetual futures and event contracts are becoming mainstream.
The agencies' actions come amid a sharp conflict with the Chicago Mercantile Exchange (CME Group). On June 17, CME CEO Terrence Duffy announced plans to sue the CFTC over its approval for the Kalshi platform to launch perpetual futures. Regulators, in turn, want to clarify the rules for new products — including contracts on prediction markets and perpetuals. The key question: do current rules align with the rapidly changing market structure?
CFTC Chairman Michael Selig emphasized that the initiative aims to eliminate uncertainty in the Dodd-Frank Act, which hinders fair competition. His SEC colleague Paul Atkins added that clarifying the rules for event contracts is long overdue. The comment collection period will last 60 days.
A CFTC representative has already called the CME lawsuit "unfounded" and accused the exchange of trying to block progress through the courts. According to him, dominant players are simply afraid of equal competition. Representatives of the decentralized exchange Hyperliquid also joined the criticism: the Hyperliquid Policy Center noted that CME controls about 92% of the derivatives market in the U.S. and is trying to maintain its monopoly.
"Americans have been going offshore for years to trade perpetual futures. This is the first truly new product on the regulated U.S. market in a decade. Competition benefits users, and innovation deserves clear rules," the organization stated.
Recall that in May, the CFTC acknowledged its lawsuit against Gemini was erroneous, citing "improper" methods by the previous leadership. This shows that the regulator is indeed reconsidering its position toward greater flexibility.
My analysis: Revising the rules is a long-overdue step, but it carries risks. If the CFTC and SEC fail to develop unified and transparent standards, the market risks facing even greater fragmentation. However, the very fact of dialogue with the industry is a positive signal. The question is whether CME can maintain its dominant position or whether we will witness a new market reshuffle.