Cryptocurrency exchange trading platform Coinbase is ready to launch futures contracts for Dogecoin (DOGE), Litecoin (LTC), and Bitcoin Cash (BCH).
According to the exchange, the launch date for the futures contracts is set for April 1, 2024.
Coinbase sent several letters to the US Commodity Futures Trading Commission (CFTC) this month seeking approval to list crypto derivatives futures on some popular assets. Coinbase Derivatives is ready to launch monthly settlement and margin futures contracts as soon as possible.
According to Cryptopotato, Coinbase's letters indicate that the exchange will self-certify cryptocurrency derivatives based on self-certification under CFTC rules outlined in Regulation 40.2(a). These rules allow companies to list new products without CFTC approval if their offerings comply with the Act and Commodity Futures Trading Commission regulations.
In the new product descriptions submitted to the CFTC, Coinbase Derivatives described the size of the proposed contracts, the calculation methods that would use the Market Vector Prime Rate, and the types of the contracts.
This decision was prompted by the significant success of Dogecoin, which has become the most successful meme coin and has become one of the top cryptocurrencies by capitalization.
At the time of writing, DOGE was trading at $0.1745, up 7.2% for the day and over 23% for the month.
Coinbase commented on its selection of the asset, "Although Dogecoin began as a meme, it has achieved a significant market capitalization, becoming one of the top cryptocurrencies in terms of market value. Dogecoin's popularity demonstrates the excellent prospects for the token, which has transcended meme coins and gained an important place in the world of cryptocurrencies."
Bloomberg analyst James Seyffart commented on Coinbase's decision to list DOGE. He is interested in the reaction of the Securities and Exchange Commission (SEC): how it will react to these products being considered commodity futures rather than securities futures. Since Dogecoin, Litecoin, and Bitcoin Cash are forked from Bitcoin, which is already classified as a commodity by the SEC, apparently, for these reasons, Coinbase chose these tokens to launch futures.
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Not surprisingly, Coinbase decided to file an application to trade Dogecoin futures with the CFTC rather than the SEC. "If the SEC had just looked at the crypto industry and developed regulatory rules, we wouldn't be taking these steps. But at the same time, my job would be a lot less interesting," Seyffarth believes.
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