The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have jointly issued a request for public comment on whether to adjust portfolio margining rules for securities, swaps, futures, and related positions. As the U.S. crypto derivatives market expands, margin arrangements and regulatory responsibilities for assets such as Bitcoin, XRP, and Ethereum are receiving increased attention.
Two institutions stated that the public consultation primarily focuses on better aligning margin frameworks across different products, reducing fragmentation caused by differing regulatory interpretations, while balancing risk management and customer protection. The public comment period will last 60 days after the document is published in the Federal Register.
Focus on cross-product margin arrangements
The core of portfolio margining is calculating margin based on overall risk rather than separately for each account or individual product. If there are hedging relationships between different positions, cross-margining allows related risks to offset each other, reducing the amount of funds scattered and locked across multiple accounts.
The SEC and CFTC noted in the document that the scope of the request for comments includes existing margin models, customer protection rules, cross-product risk offsets, capital requirements, asset segregation, collateral usage, clearing arrangements, operational systems, and impacts on liquidity and market competition.
Crypto perpetual contracts bring new pressure
This public consultation also comes as regulatory discussions in the U.S. intensify around crypto perpetual futures. Perpetual contracts, which have no fixed expiration date, differ in product characteristics from traditional futures, making their classification—whether as futures or swaps—the subject of market debate.
The report notes that the U.S. has recently approved crypto perpetual futures products, prompting regulators to reevaluate the classification and oversight of digital asset derivatives. Prior to this, CME Group filed a lawsuit against the CFTC in federal court, arguing that such products without fixed expiration dates should be classified as swaps rather than futures.
If treated as swaps, the relevant products would typically face stricter margin requirements and heavier compliance obligations for swap dealers. The CFTC’s position is that the absence of a maturity date does not automatically alter their futures characteristics.
Regulatory boundaries are still being defined.
The SEC and CFTC also indicated that they are evaluating how margin rules should apply when products fall at the intersection of securities and commodities regulation. This issue has become increasingly relevant as tokenized securities, crypto futures, and perpetual contracts expand simultaneously in both traditional and on-chain markets.
On June 23, two agencies also sought public comment on the legal definition of new derivatives, including event contracts and perpetual contracts. This move similarly aims to clarify the regulatory boundaries between the SEC and the CFTC, providing a clearer foundation for future product design and market access.