U.S. Regulatory Turf Wars Over Derivatives and Novel Products
The CFTC and SEC are working through jurisdictional questions as crypto derivatives platforms seek approval for new products. The CFTC asked a judge to dismiss CME's lawsuit over crypto perpetual futures, characterizing the dispute as immaterial and noting that designated contract markets—including CME itself—are authorized to list these products. Meanwhile, Kalshi is reportedly filing with the CFTC for approval of WTI crude oil perpetual futures contracts that would trade perpetually without expiration dates, signaling demand for commodities-based derivatives in the crypto space.
SEC Chair Paul Atkins has indicated the Clarity Act is expected to pass this month, which could establish clearer boundaries between SEC and CFTC authority over digital assets. Separately, crypto industry groups including The Crypto Council for Innovation and Grayscale have petitioned the SEC to preserve existing exchange-traded fund classifications and streamline reviews for novel crypto ETF products, suggesting regulatory friction over how quickly new structures can reach market.
