The US CFTC and SEC seek public comments to clarify the regulatory definition of "swap"

Jinse Finance reported that on June 19, against the backdrop of related lawsuits with the Chicago Mercantile Exchange (CME), the U.S. Commodity Futures Trading Commission (CFTC) and the U.S. Securities and Exchange Commission (SEC) jointly issued a public request for comment, planning to update and clarify the definitions and regulatory interpretations of certain derivatives products. This request covers a wide range of topics, including the definition of "Swaps," the definition of "Security-Based Swaps," and the delineation of exemptions applicable to these definitions. The two agencies are also seeking public comments on regulatory approaches for novel or emerging financial products, which may include event contracts on prediction market platforms and perpetual futures/perpetual contracts. CFTC Chairman Michael S. Selig stated in a press release: "Today’s joint public request for comment provides an opportunity to address longstanding regulatory ambiguities under Title VII of the Dodd-Frank Act. These ambiguities have impeded fair competition and responsible innovation." Under Title VII of the Dodd-Frank Act, the CFTC has regulatory authority over swap products, except for security-based swaps. SEC Chairman Paul Atkins also stated that clarifying certain definitions is urgently needed, especially regarding the regulatory classification of event-driven products.