What Are the Key Regulatory Differences between a Security-Based Swap and a Crypto Future?

A security-based swap (on a security-classified crypto) is regulated by the SEC and is subject to the Dodd-Frank Act's rules, including mandatory clearing and execution on regulated facilities. A crypto future (on a commodity-classified crypto like Bitcoin) is regulated by the CFTC and must be traded on a designated contract market (DCM).

The primary difference is the governing regulatory body and the resulting compliance requirements stemming from the asset's classification.