Coinbase Global Inc. is on the brink of offering futures trading for Litecoin, Bitcoin Cash, and Dogecoin starting April 1. Furthermore, this initiative aims to expand trading options for crypto enthusiasts, focusing on these well-known digital currencies.
Coinbase announced its plans through a filing to the Commodity Futures Trading Commission (CFTC) on March 7. Additionally, the move went largely unnoticed at first but marks a significant step for both Coinbase and the crypto world. If the CFTC approves, the Dogecoin Futures ETF, among others, will begin trading. Moreover, the news was shared by a user named Summers on X, emphasizing the benefit for the Dogecoin community and mentioning Elon Musk, a supporter of Dogecoin.
Coinbase Derivatives LLC quietly filed certifications with CFTC to list US regulated futures for Dogecoin, Litecoin and Bitcoin Cash.
— Summers (@SummersThings) March 20, 2024
They filed them on March 7 and surprisingly nobody seemed to notice.
Futures are set to start trading on April 1 if there are no objections from… pic.twitter.com/DYbWjuS6G2
Coinbase will utilize the self-certification rule under CFTC Regulation 40.2(a), indicating it doesn’t need to wait for direct CFTC approval. Instead, the exchange needs to ensure its products comply with the Commodity Exchange Act and CFTC regulations. Specifically, the filing detailed the contracts’ sizes, settlement methods, and structures, relying on a benchmark rate from Market Vector.
Choosing the CFTC Path
Opting for the CFTC over the SEC allows Coinbase to sidestep the regulatory challenges other crypto exchanges have faced. Consequently, the SEC, under Gary Gensler, has viewed cryptocurrencies skeptically, often deeming them securities, which could hinder Coinbase’s efforts.
Conversely, CFTC Chair Rostin Behnam’s view of Ethereum as a commodity suggests a more open approach to cryptocurrencies. Meanwhile, amid legal tussles between Binance, Coinbase, and the SEC, Coinbase’s decision to file with the CFTC hints at a potentially smoother path for its futures trading endeavors.
This move by Coinbase isn’t merely about diversifying its portfolio; it signifies a critical moment in the ongoing evolution of cryptocurrency trading and regulation. Therefore, as the launch date approaches, the crypto community eagerly awaits the CFTC’s response, with Coinbase’s strategy possibly setting a new standard for cryptocurrency trading products and regulatory interactions.
With Coinbase poised to launch futures trading for Litecoin, Bitcoin Cash, and Dogecoin, the initiative is expected to significantly influence the regulatory landscape and market development of digital assets. Thus, the upcoming launch represents an important milestone in integrating cryptocurrencies more deeply into the financial trading ecosystem.
