The U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission have issued a joint request for public comment on possible changes to portfolio margin rules across securities, swaps, futures, and related positions, as crypto derivatives markets expand in the United States.
The request asks market participants to provide feedback on how the two agencies could better align margin frameworks covering securities, security-based swaps, futures, swaps, and connected products. The public comment period will remain open for 60 days after the request is published in the Federal Register.
The review comes as Bitcoin, XRP, Ethereum, and other crypto-linked futures products receive greater attention from regulators, exchanges, and investors. It also follows recent U.S. approvals for crypto perpetual futures, which have created new debate over how digital asset derivatives should be classified and supervised.
SEC and CFTC Target Cross-Margining Rules
The SEC and CFTC said the request is intended to help evaluate whether stronger coordination in portfolio margining requirements could improve risk management, reduce market fragmentation, and increase customer protections under each agency’s legal authority.
Portfolio margining allows risk to be assessed across multiple positions rather than treating each account or product separately. Cross-margining can allow related exposures to offset one another, potentially reducing the amount of collateral locked in separate accounts when risks are connected.
SEC Chairman Paul S. Atkins said harmonizing the agencies’ frameworks could prevent jurisdictional overlap from limiting innovation and efficiency. He said cross-margining offers a way to unlock liquidity that remains separated across accounts and encouraged market participants to submit ideas on improving coordination between the SEC and CFTC.
Source: X
CFTC Chairman Mike Selig said closer cooperation between the agencies on portfolio margining could release capital while maintaining stronger risk management and market protections. He said the CFTC expects to review and implement stakeholder feedback as financial markets continue changing.
Crypto Perpetual Futures Add Regulatory Pressure
The request comes during a wider regulatory debate over crypto perpetual futures, including products tied to Bitcoin and XRP. Perpetual futures allow traders to take positions on asset prices without a fixed expiration date, making them structurally different from traditional futures contracts.
The CFTC’s approval of crypto perpetual futures for U.S. platforms has drawn legal and market structure challenges. As we reported, CME Group has filed a federal lawsuit against the CFTC, arguing that such products should be treated as swaps rather than futures because they lack a fixed expiration date.
CME’s position is that classifying perpetual contracts as swaps would bring heavier regulatory requirements, including stricter margin treatment and swap dealer obligations. The CFTC has taken the position that a contract does not stop being a futures product solely because it does not have an expiration date.
Agencies Seek Input on Market Structure Issues
The joint request asks for feedback on existing portfolio margining models, customer protection rules, cross-product offsets, capital treatment, segregation requirements, collateral use, clearinghouse arrangements, operational systems, and effects on liquidity and competition.
The agencies are also reviewing how margin rules should apply when products fall near the line between securities and commodities regulation. That issue has become more relevant as tokenized securities, crypto futures, and perpetual contracts grow across both traditional and blockchain-based markets.
On June 23, the SEC and CFTC also sought public input on statutory definitions for newer derivatives, including event contracts and perpetual contracts. That effort is aimed at clarifying jurisdictional boundaries between the two agencies.
The latest request does not create immediate new rules for Bitcoin or XRP futures. Instead, it opens a formal comment process that could shape future rulemaking on margin coordination, customer safeguards, and clearing practices.
