Markets • March 20, 2024, 5:10 p.m. EDT
Published 1 minute earlier At
UPDATED: March 20, 2024, 5:26 p.m. EDT
Dogecoin may have started out as a joke, but this April Fool's Day it's attracting serious attention. Coinbase Derivatives plans to launch futures trading for the top memecoin alongside Litecoin and Bitcoin Cash.
On March 7, the crypto exchange announced its intention to launch monthly cash-settled futures contracts through three separate letters to the Commodities Futures Trading Commission (CFTC). Dogecoin, Litecoin And Bitcoin cash. These communications, addressed to CFTC Secretary Christopher Kirkpatrick, detailed the sizes of the proposed contracts, settlement methods (using a Market Vector benchmark interest rate), and structure.
Coinbase emphasized in these letters that it is using the self-certification pathway under CFTC Regulation 40.2(a) to list these futures contracts. This process allows exchanges to introduce new offerings without having to wait for direct approval from the CFTC, provided they certify that the product complies with the Commodity Exchange Act and CFTC regulations.
Since all three cryptocurrencies descend from Bitcoin, which is recognized as a commodity by the Securities and Exchange Commission, their classification raises interesting regulatory questions. James Seyffart, research analyst for Bloomberg Intelligence ETF published on X.com“That's interesting… I wonder if the SEC objects to these being classified as 'commodity futures' rather than 'securities futures.' Given their Bitcoin origins, it would be difficult to call them securities, especially after spot approvals for #Bitcoin ETFs. Coinbase's selection could be strategic.
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