Author: Tom Mitchelhill, CoinTelegraph; Compiled by: Deng Tong, Golden Finance
Cryptocurrency exchange Coinbase believes that Dogecoin’s “enduring popularity” shows that it has transcended its meme origins , becoming a staple in the cryptocurrency industry, the exchange now plans to launch futures trading products for cryptocurrencies.
In three separate letters to the U.S. Commodity Futures Trading Commission (CFTC) on March 7,Coinbase Derivatives announced plans to launch Dogecoin, Litecoin and Bitcoin as early as April 1 Coin Cash’s cash-settled futures contract product.
Notably, the letter states that Coinbase Derviatives can list futures contracts on its platform before receiving formal approval from the CFTC.
Coinbase explained that it will use a "self-certification" method to launch futures contracts as long as they follow regulatory guidelines set by the agency.
“Coinbase Derivatives […] hereby submits for self-certification the initial listing of Dogecoin futures contracts to trade on the Exchange on or after April 1, 2024,” related Dogecoin futures product letter reads.
Coinbase invokes "self-certification" rules to list Dogecoin before April 1. Source: CFTC
Coinbase defends its announcement to list Dogecoin, claiming the meme coin has transcended its origins as a mere joke and has become a fundamental element of the crypto industry .
“Dogecoin’s enduring popularity and active community support indicate that it has transcended its origins as a meme and become a staple in the cryptocurrency world.”
Per CoinMarketCap According to data, the price of DOGE is currently up 17% on the day, trading at $0.15 at press time.
While several market commentators on social media seemed confused by the move, analysts suggested that listing futures contracts may be an orchestrated move by Coinbase to force the U.S. Securities and Exchange Commission Take action.
Bloomberg exchange-traded fund analyst James Seyffart noted in a March 20 Any crypto-asset using the same proof-of-work consensus mechanism as Bitcoin is classified to avoid being declared a “security.”
"Wonder if the SEC objects to their classification as 'commodity futures' and 'security futures,'" Seyffart wrote. “These [are all based on] Bitcoin, so it would be difficult to make the argument ‘these are securities’ after the spot Bitcoin ETF is approved.”
Source: James Seyffart
In 2022, Coinbase acquired the CFTC-regulated FairX derivatives exchange to launch crypto derivatives trading for its U.S. customers.
Coinbase said at the time: "We want to make the derivatives market more approachable for our millions of retail customers."
Coinbase's move to introduce perpetual futures for Pepe (PEPE) on its off-shore platform ignited initial enthusiasm among traders, although the token's value retraced shortly after the announcement.
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