SEC Eyes Rule Change to Bring EU Debt Futures Under CFTC

Highlights:

• The SEC wants to bring EU-issued debt under the same framework already used for several European countries.
• The CFTC would oversee qualifying debt futures after the change takes place.
• The public will have 60 days to comment after the SEC publishes the proposal.

The SEC has proposed changing Rule 3a12-8 to include debt issued by the EU. The amendment would extend an existing foreign government debt framework to qualifying futures linked to EU obligations. The exemption would cover futures marketed or traded in the United States or offered to persons in the country. The federal securities laws, however, would continue to apply to any securities that were offered as part of the underlying EU bonds.

TODAY🚨: The SEC proposed amendments to Rule 3a12-8 to add the debt obligations of the European Union to the list of foreign government debt obligations designated as "exempted securities" solely for the purposes of futures marketing and trading. https://t.co/qYb6AbXgoP

— U.S. Securities and Exchange Commission (@SECGov) August 28, 2026

The SEC introduced Rule 3a12-8 in 1984 to cover government debt from the United Kingdom and Canada. The agency later added countries including Japan, Australia, France, Germany, Italy and Spain. Today, the rule covers government debt from 11 EU member states alongside debt from several other countries. However, Rule 3a12-8 does not currently cover debt issued by the European Union itself.

The SEC wants to remove that regulatory gap because the rule treats comparable European debt differently. EU debt remains outside the rule because the European Union is not a nation-state like the listed governments. However, the SEC said the bloc has economic and institutional features that support similar regulatory treatment. The agency also said market participants increasingly treat the European Union as a sovereign debt issuer.

SEC Chairman Paul Atkins said Rule 3a12-8 currently treats comparable European debt differently. The rule covers several EU countries but excludes debt issued directly by the bloc. He said, “For too long, gaps like this one—where the debt of several EU member states was covered, but debt of the European Union itself was not—have created exactly the kind of inconsistency that breeds confusion rather than confidence in the markets.”

For too long, gaps like this one—where the debt of several EU member states was covered but debt of the EU itself was not—have created inconsistency that breeds confusion rather than confidence in the markets. This proposal is SEC-CFTC harmonization in practice. https://t.co/fB2kxk0SUb

— Paul Atkins (@SECPaulSAtkins) August 28, 2026

CFTC Would Oversee EU Debt Futures

The amendment would give the CFTC full authority over the EU debt futures that qualify under the rule. The rule would exclude qualifying contracts from the legal definition of security futures.

Meanwhile, the SEC would retain authority over relevant offerings involving the underlying European Union debt securities. The agency would not provide EU bonds with a broad exemption from federal securities requirements. Instead, the exemption would apply specifically to qualifying futures marketing and trading activities.

Qualifying contracts would still need to meet several existing requirements under Rule 3a12-8. The underlying EU debt cannot have Securities Act registration when market participants rely on the exemption. The exemption would also exclude debt represented by a registered American depositary receipt.

The proposal differs from a separate U.S. jurisdictional dispute involving options based directly on Bitcoin. CME Group argued that Bitcoin is a non-security commodity and that qualifying options should fall exclusively under CFTC authority. Nasdaq PHLX argued that joint SEC-CFTC oversight could provide another compliant route for Bitcoin-based options. In contrast, the EU proposal assigns qualifying futures to the CFTC while keeping relevant underlying debt offerings under SEC securities rules.

Just In: CME to Sue CFTC Over U.S. Approval of Perpetual Futures

CME Group, the world’s leading derivatives marketplace, will sue the CFTC over its approval of perpetual futures in the U.S., outgoing CEO Terrence Duffy said. The dispute follows the CFTC’s late-May approval… pic.twitter.com/7S4KfzLnsY

— Wu Blockchain (@WuBlockchain) June 18, 2026

Public Gets 60 Days to Comment

The SEC will open a 60-day comment period after publishing the Rule 3a12-8 proposal in the Federal Register. Market participants can address access to EU-linked futures, available investor information, and potential costs during that period. The agency also wants feedback about how the amendment could affect investors and other participants in these markets.

Separately, the SEC also published Regulation Crypto Assets on Aug. 18 with proposed exemptions and safe harbors for qualifying digital asset offerings. The proposal includes a startup exemption covering up to $5 million in qualifying fundraising over four years. Another exemption could cover qualifying fundraising of up to $75 million during a rolling 12-month period.