Coinbase Derivatives Plans To Launch Futures Trading for Dogecoin in Letter to CFTC

Coinbase Derivatives Plans To Launch Futures Trading for Dogecoin in Letter to CFTC

Coinbase Derivatives, a popular cryptocurrency exchange, announced its plans to introduce futures trading for Dogecoin, Litecoin and Bitcoin Cash on April 1. On March 7, Coinbase submitted three separate letters to 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, provided detailed information regarding the contracts’ sizes, settlement methods, and structure. Coinbase intends to utilize the self-certification route under CFTC Regulation 40.2(a) to list these futures contracts, allowing them to proceed without direct approval from the CFTC as long as they comply with the Commodity Exchange Act and CFTC regulations.

The classification of these cryptocurrencies as commodities raises intriguing regulatory questions since they all derive from Bitcoin, which the Securities and Exchange Commission (SEC) recognizes as a commodity.

James Seyffart, an ETF research analyst at Bloomberg Intelligence, shared on X, suggesting that Coinbase’s selection of these 3 crypto assets for futures trading could be strategic, given that they are derived from Bitcoin, which the SEC already view as a commodity and not a security.