The Blockchain Association filed formal comments on August 25 urging the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to build a joint regulatory framework for equity perpetuals. This class of derivatives generates substantial volume overseas but remains effectively banned from US trading venues.
The filing comes as both regulatory agencies actively solicit feedback on how to handle perpetual contracts, which function similarly to futures but lack an expiration date. Equity perpetuals are perpetual futures contracts tied to equities that use funding rates to keep the contract price tethered to the underlying asset's spot price.
Proposed Framework and Industry Push
The Blockchain Association's proposal suggests using the existing joint security futures framework already shared by the SEC and CFTC as a template for regulating equity perpetuals, rather than creating new rules from scratch. The filing also advocates for a technology-neutral, outcomes-based approach that avoids singling out blockchain-based platforms and instead focuses on a product's function rather than its underlying technology stack.
This submission is part of a broader, coordinated industry push. The Hyperliquid Policy Center submitted its own comments on August 24, citing over $480 billion in notional trading volume on its HIP-3 markets to demonstrate growing demand. Coinbase has also submitted similar comments, creating a united front among prominent crypto industry participants.
Implications for US Markets
The jurisdictional division between the SEC, which oversees securities, and the CFTC, which oversees derivatives, leaves equity perpetuals without a clear regulatory home. Currently, this dynamic pushes US traders toward offshore platforms that typically offer fewer investor protections, reduced transparency, and no consumer recourse.
Both the SEC and CFTC previously issued a joint request for feedback on perpetual contracts as part of a memorandum of understanding focused on derivatives market innovation. Meanwhile, recent policy statements from the CFTC have signaled a potential openness to certain types of perpetual contracts.
