- Blockchain Association urged the SEC and CFTC to create a clear regulatory path for equity perpetuals to enter U.S. markets.
- The group said clearer rules could bring offshore liquidity, price discovery, jobs, and innovation under U.S. oversight.
- Blockchain Association proposed using existing security futures rules and technology-neutral standards for transparency and asset protection.
The Blockchain Association is asking the SEC and CFTC to clarify rules for equity perpetuals and support U.S. trading. The group filed comments with both agencies this week, arguing that these products currently trade exclusively offshore. It said clearer rules could bring their markets under U.S. oversight and provide investors with related protections.
Equity Perpetuals Remain Offshore
According to the Blockchain Association, equity perpetuals currently operate outside the United States. As a result, American markets do not capture price discovery from these products.
The group also said offshore trading leaves these markets outside protections associated with U.S. oversight. However, it argued that regulators can address the issue under existing law.
The association wants the SEC and CFTC to coordinate on a framework covering innovative financial products. It said the agencies should provide a clear route for equity perpetuals to enter U.S. markets.
That request comes as the group warns that prolonged uncertainty could keep market activity offshore. It specifically cited liquidity, jobs, market data and innovation among the areas affected.
Group Proposes Existing Regulatory Tools
The Blockchain Association recommended using the existing joint framework for security futures. It also urged regulators to use current authorities for novel derivatives where appropriate.
Additionally, the group proposed a technology-neutral framework based on regulatory outcomes. Under that approach, rules would focus on the protections required rather than specific market infrastructure.
The proposed framework would cover several areas. These include transparency, auditability, market surveillance, customer asset protection, financial integrity and operational resilience.
The association also said blockchain infrastructure could help support those requirements. It argued that blockchain-based systems could give market participants more choices around market infrastructure.
SEC and CFTC Face Calls for Coordination
The group said the SEC and CFTC can work together without waiting for new legislation. Its comments focus on using existing regulatory powers to establish clearer treatment.
Notably, the association wants both agencies to create a workable path for equity perpetual markets. It said regulatory clarity could allow trading activity to move into U.S. markets.
The group also warned that continued ambiguity could keep liquidity and related economic activity offshore. Meanwhile, it called for U.S. oversight alongside market access for these products.
The Blockchain Association said the SEC and CFTC now have an opportunity to establish clearer rules. It urged both agencies to coordinate rather than leave equity perpetuals outside U.S. markets.
