The U.S. Securities and Exchange Commission has proposed amending Rule 3a12-8. The change would add European Union debt obligations to the list of foreign government securities exempted for futures marketing and trading.
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SEC Seeks to Add EU Debt to Rule 3a12-8
The proposed amendment would add debt issued by the European Union to Rule 3a12-8. The rule already covers debt obligations from several foreign governments.
The exemption would apply only to futures marketing and trading. Federal securities laws would still govern the underlying European Union debt securities.
SEC Chairman Paul S. Atkins said the current framework covers debt issued by several EU member states. However, the rule does not currently include debt issued directly by the European Union.
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“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,” Atkins said.
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CFTC Would Oversee EU Debt Futures
Under the proposal, the Commodity Futures Trading Commission would oversee futures contracts tied to European Union debt obligations.
The change would align EU debt futures with the treatment already given to other foreign government debt futures under Rule 3a12-8.
Atkins said, “This proposal is harmonization in practice and builds on our efforts with the CFTC to preserve investor protection while closing regulatory gaps.”
The SEC does not plan to change the other substantive requirements of Rule 3a12-8. Existing provisions for other foreign government debt obligations would stay in place.
Proposal Comes as SEC Advances Crypto Rulemaking
The EU debt proposal comes as the SEC works on broader regulatory changes. Those efforts cover both traditional securities and digital assets.
The agency is also reviewing crypto custody rules. Possible changes would update how investment firms hold client and fund assets, including crypto assets.
The SECs 2026 regulatory agenda also includes possible rules for crypto offerings and broker-dealers. The agency is also reviewing crypto market structure.
Regulators are considering exemptions and safe harbors for certain crypto asset sales. These could include registration relief and fundraising exemptions for some market participants.
The SEC plans to publish the Rule 3a12-8 proposal in the Federal Register. The public comment period will stay open for 60 days after publication.