FalconX Bravo, a CFTC-registered swap dealer focused on digital assets, asked the SEC and CFTC to classify certain perpetuals on single securities or narrow indices, including contracts offered through DeFi protocols, as security-based swaps. This classification would trigger registration, business-conduct, transaction-reporting, capital, margin, and segregation requirements for affected dealers and platforms. FalconX also proposed raising the combined-notional threshold for alternative compliance relief from 10% to 49% under Rule 18a-10. Bitcoin perpetuals and general crypto perpetuals are not covered by this request. The comment period closes August 24, but the agencies have not committed to any rulemaking.
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