US regulators seek comment on derivative definitions amid perp futures lawsuit

The U.S. Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) have launched a joint public comment period to clarify the definition and interpretation of derivatives, The Block reported. The move is linked to a lawsuit filed by CME Group challenging the CFTC's approval of Kalshi's perpetual futures product. CME Group contends that perpetual futures should be classified as swaps rather than commodities. The CFTC has stated it will file a motion to dismiss the lawsuit, arguing that it runs counter to the Trump administration's pro-innovation stance.