Blockchain Association Seeks Clarity on Equity Perpetual Regulation

The Blockchain Association has called on the US Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) to coordinate their efforts in regulating equity perpetuals, a type of financial instrument that combines features from both securities and derivatives markets.

The association argues that clearer rules could help bring offshore activity involving these products into the US market. Equity perpetuals are derivatives designed to provide exposure to the price movements of an underlying asset without a fixed expiration date, making them distinct from traditional futures contracts.

The Blockchain Association believes that coordination between the SEC and CFTC is crucial in establishing a clear framework for equity perpetual markets, which would give market participants greater visibility into applicable requirements. This could potentially encourage offshore market activity to move into the domestic regulatory environment.