Can a Crypto Options Contract Be Classified as a Security-Based Swap?
Generally, no. Options contracts are distinct from swaps.
However, if a crypto asset is deemed a security, an options contract on that asset would be a security-based option , falling under SEC jurisdiction. While options and swaps are both derivatives, they are treated differently under the Dodd-Frank Act.
The key is the underlying asset's classification (security vs. commodity) and the specific structure of the derivative contract.
Glossar
Crypto Options Contract
Premium ⎊ A crypto options contract embodies a financial agreement granting the buyer the right, but not the obligation, to buy or sell an underlying cryptocurrency at a predetermined price on or before a specified date.
Security-Based Option
Option ⎊ A security-based option, within the cryptocurrency derivatives landscape, represents a contract granting the holder the right, but not the obligation, to buy or sell a specified cryptocurrency asset at a predetermined price (the strike price) on or before a specific date (the expiration date).
Options Contract
Leverage ⎊ An options contract, within the cryptocurrency derivatives landscape, represents a right ⎊ but not an obligation ⎊ to buy or sell an underlying asset at a predetermined price on or before a specified date.