On April 1, Coinbase Derivatives will begin offering futures trading for Litecoin (LTC), Bitcoin Cash (BCH), and Dogecoin (DOGE).In order to ensure regulatory compliance, the exchange will use self-certification with the CFTC for speedy listing.The three may have been selected because they are descended from Bitcoin, which the SEC views as a commodity.
Though it is still a meme coin, Dogecoin is receiving a lot of attention lately. Coinbase Derivatives intends to launch futures trading for Litecoin, Bitcoin Cash, and Dogecoin.
On March 7, the cryptocurrency exchange revealed its plan to introduce monthly cash-settled futures contracts for dogecoin, litecoin, and bitcoin cash through three different letters to the Commodities Futures Trading Commission (CFTC).
These correspondences, which were addressed to CFTC Secretary Christopher Kirkpatrick, included information on the sizes, structures, and settlement procedures (which would use Market Vector’s benchmark rate as a basis).
Coinbase made clear that in order to list these futures contracts, it is taking use of the self-certification pathway as permitted by CFTC Regulation 40.2(a).
Under this process, exchanges can launch new products without waiting for direct CFTC approval as long as they confirm that the product complies with CFTC regulations and the Commodity Exchange Act.
James Seyffart, an analyst with Bloomberg ETFs, pointed out on March 20 on X that the filings might have been a calculated move to prevent the SEC from designating as a “security” any cryptocurrency assets that used the same proof-of-work consensus method as Bitcoin.
The US Securities and Exchange Commission considers Bitcoin, the parent of all three cryptocurrencies, as a commodity, therefore their classification presents some intriguing regulatory issues.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
