FalconX Seeks SEC Ruling for DeFi Perpetuals
FalconX Bravo has asked US regulators to treat cash-settled perpetuals tied to a single security or narrow-based index as security-based swaps under SEC rules.
The firm submitted its proposal to the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) on August 12. FalconX Bravo is listed on the CFTC's registered swap dealer roster and describes its business as focused on digital assets and market participants.
FalconX's definition covers specified perpetuals and options on them, but does not extend to Bitcoin or crypto perpetuals generally. The firm wants the SEC to treat these contracts as security-based swaps under Rule 18a-10.
The proposed change would reduce duplicated requirements for firms already overseen by the CFTC. FalconX also asks the SEC to increase its combined-notional threshold for alternative compliance from 10% to 49%, keeping the fixed-dollar cap, SEC registration and oversight, and other requirements not covered by the relief.