Andreessen Horowitz Calls for Reclassification of Swaps with SEC and CFTC

Andreessen Horowitz has demanded that the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) reset the regulatory classification criteria for tokenized securities and perpetual contracts. In a statement on the 26th, it was noted that the criteria distinguishing swaps from security-based swaps should be based on counterparty dependence rather than the reference of the underlying asset. The SEC and CFTC began soliciting comments on additional definitions for swaps and security-based swaps on June 18, with the comment deadline set for August 24. Andreessen Horowitz argued that on-chain financial products should not all be grouped as derivatives and that tokenized products referencing underlying securities should be allowed to be created without third parties. It explained that these products could be classified as securities rather than swaps. Furthermore, it added that such products could be securities of a note nature and could be viewed as delayed sale contracts based on physical settlement of the underlying securities. Andreessen Horowitz stated that by 2026, the regulated assets under management would exceed $100 billion, and the committed capital of crypto funds would surpass $9.8 billion. The statement also proposed a separate pathway for perpetual contracts, noting that the CFTC has previously approved perpetual contracts linked to Bitcoin spot prices as futures contracts. Industry opinions vary, with claims that regulatory uncertainty is hindering innovation and capital formation. This statement holds significance for Korean investors in the context of the institutionalization discussions surrounding the U.S. on-chain securities and perpetual contracts market.