The United States Securities and Exchange Commission (SEC) and the Commodity Futures and Exchange Commission (CFTC) jointly issued a public consultation paper on whether to adjust the portfolio security rules for securities, swaps, futures and related positions. As the United States market for encrypted derivatives expands, more attention is being paid to security arrangements and the division of regulatory roles for related products, such as bitcoin, XRP and the Ether Mill.
According to both agencies, the consultation focused on how to better align the bond framework between different products and reduce the fragmentation caused by different regulatory calibres, taking into account risk management and customer protection. The period of public opinion will last 60 days after the publication of the document in the Federal Gazette.
Focus cross-product bond arrangements
At the core of the portfolio bond is a guarantee calculated on the basis of overall risk rather than a single account or single product. Cross-guarantee arrangements allow for offsetting associated risks if there is a hedge relationship between positions, thus reducing the risk of funds being decentralized in multiple accounts.
In the paper, SEC and CFTC mentioned that the scope of comments included existing bond models, customer protection rules, cross-product risk credits, capital occupancy, asset segregation, collateral use, liquidation arrangements, operating systems, and effects on liquidity and market competition.
It's a new pressure to keep the contract for good.
The consultation also took place at a time when the United States was discussing warming in the context of the regulatory discussions on the encryption of futures. The lack of fixed maturity dates for the renewal of contracts makes them different from traditional futures in terms of product attributes, and makes them subject to futures or re-regulation, which is the focus of market debate.
The recent approval by the United States of secure and renewable futures products was mentioned, and developments have prompted regulators to revisit the way digital asset derivatives are classified and regulated. CME Group had previously filed a lawsuit with the Federal Court against CFTC, arguing that such products, which did not have a fixed maturity date, should be considered swaps rather than futures.
If the swap is followed, the products usually face more stringent bond requirements and more onerous swap traders ' compliance obligations. The position of the CTC is that the contract has no maturity date and does not automatically change its futures properties.
The border is still clear.
The SEC and CFTC also indicated that an assessment was being made of how the bond rules should be applied when products were at the intersection between securities and bulk commodity regulation. This problem has become even more real as tokenized securities, encrypted futures and sustainable contracts have expanded in both traditional and chain markets.
On 23 June, both institutions also sought public opinion on the legal definition of new derivatives, including the incident contract and the durability contract. The initiative also points to a central issue: further clarification of the regulatory boundaries between the SEC and the CTC and providing a clearer basis for subsequent product design and market access.