Coinbase Derivatives plans to launch futures trading for Dogecoin in a letter to the CFTC

Coinbase Derivatives plans to launch futures trading for Dogecoin in a letter to the CFTC

Coinbase Derivatives, a popular cryptocurrency exchange, announced its plans to launch futures trading for Dogecoin, Litecoin, and Bitcoin Cash on April 1. On March 7, Coinbase filed three separate letters with the Commodities Futures Trading Commission (CFTC) outlining its proposal for monthly cash-settled futures contracts for Dogecoin, Litecoin and Bitcoin Cash.

The letters, addressed to CFTC Secretary Christopher Kirkpatrick, detailed information on contract sizes, settlement methods and structure. Coinbase intends to use the self-certification route under CFTC Regulation 40.2(a) to list these futures contracts so that they can proceed without direct CFTC approval as long as they comply with the Commodity Exchange Act and CFTC regulations.

Classifying these cryptocurrencies as commodities raises interesting regulatory questions as they are all derived from Bitcoin, which is recognized as a commodity by the Securities and Exchange Commission (SEC).

James Seyffart, an ETF research analyst at Bloomberg Intelligence, shared on security.