Former Regulators Comment on SEC-CFTC Swap Boundaries
Ex-CFTC Chairman Giancarlo and other former officials warn that unclear swap rules could drive liquidity offshore, citing $900 trillion in 2025 offshore perpetuals volume.
Former CFTC Chairman Chris Giancarlo, former CFTC Commissioners Brian Quintenz and Sharon Brown-Hruska, former SEC Commissioner Steven Wallman, and former SEC Chief Economist Chester Spatt submitted a comment letter to the SEC and CFTC on boundaries between swaps and security-based swaps.
The letter states that poorly drawn regulatory lines risk continued movement of liquidity overseas and calls for similar risks to receive similar treatment without added compliance burdens from overlapping rules.
Volume data and signatory role
Giancarlo noted that the market awaits a reasonable set of U.S. rules. The letter cites Kalshi data showing offshore perpetual contract trading volume exceeded $900 trillion in 2025, up from $280 trillion two years earlier.
Kalshi retained the law firm that prepared the letter; the signatories received no payment and did not direct its content.
Open questions
It remains unknown whether the letter will lead to new coordination between the agencies or to formal rule proposals.