Coinbase Plans to Add Dogecoin Futures
Coinbase asserts that Dogecoin's sustained popularity indicates it has evolved beyond its origins as a meme and has become a significant asset in the cryptocurrency sphere.
Consequently, the exchange intends to introduce futures trading products for Dogecoin, among other cryptocurrencies.
In correspondence with the United States Commodity Futures Trading Commission (CFTC) on March 7, Coinbase Derivatives outlined its proposal to launch cash-settled futures contracts for Dogecoin, Litecoin, and Bitcoin Cash, potentially by April 1. Noteworthy is Coinbase’s indication that it might list these futures contracts on its platform before securing official approval from the CFTC.
Coinbase plans to utilize the “self-certification” approach to launch these futures contracts, ensuring compliance with regulatory standards set by the agency.
The announcement regarding the introduction of Dogecoin futures highlights Coinbase’s view that Dogecoin has transcended its meme origins to become an integral part of the cryptocurrency ecosystem.
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Although some observers on social media expressed confusion regarding Coinbase’s decision, analysts speculate that the move to offer futures contracts could be a strategic maneuver to influence the Securities and Exchange Commission (SEC).
Bloomberg ETF analyst James Seyffart suggested that Coinbase’s filings might be aimed at preventing the SEC from classifying cryptocurrencies using the same proof-of-work consensus mechanism as Bitcoin as “securities.”
In 2022, Coinbase acquired FairX, a CFTC-regulated derivatives exchange, with the intention of introducing crypto derivatives trading to its U.S. clientele, emphasizing its commitment to making the derivatives market more accessible to retail customers.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
