Key Points
- Coinbase Derivatives will introduce futures trading for dogecoin, litecoin, and bitcoin cash starting April 1.
- The move was announced through letters to the Commodities Futures Trading Commission (CFTC).
Coinbase Derivatives has announced the introduction of futures trading for dogecoin, litecoin, and bitcoin cash.
The announcement was made on March 7, through three separate letters to the CFTC.
Futures Trading Details
The letters detail the proposed contracts’ sizes, settlement methods, and structure.
They also reveal that the exchange is using the self-certification route under CFTC Regulation 40.2(a) to list these futures contracts.
This allows exchanges to introduce new offerings without waiting for direct CFTC approval, as long as they confirm the product’s compliance with the Commodity Exchange Act and CFTC regulations.
Regulatory Implications
The fact that all three cryptocurrencies originate from bitcoin, which is recognized as a commodity by the Securities and Exchange Commission, raises interesting regulatory questions.
James Seyffart, a Bloomberg Intelligence ETF research analyst, commented on the situation, noting the potential difficulty in classifying these as securities given their origins from Bitcoin, especially after spot Bitcoin ETF approvals.
The choice of these particular cryptocurrencies by Coinbase may be a strategic one.
