UPDATED: March 20, 2024, 5:26PM EDT
Dogecoin (*1*) may need begun as a joke, however this April Idiot’s Day, it is getting critical consideration. Coinbase Derivatives plans to kick off futures trading for the highest canine in memecoins, alongside litecoin and bitcoin cash.
On March 7, via three separate letters to the Commodities Futures Trading Fee (CFTC), the crypto alternate introduced its intention to launch month-to-month cash-settled futures contracts for dogecoin, litecoin and bitcoin cash. These communications, directed to CFTC Secretary Christopher Kirkpatrick, detailed the proposed contracts’ sizes, settlement strategies (leveraging a benchmark fee by Market Vector), and construction.
Coinbase highlighted in these letters that it is leveraging the self-certification route underneath CFTC Regulation 40.2(a) to listing these futures contracts. This process permits exchanges to introduce new choices with out awaiting direct CFTC approval, offered they affirm the product’s adherence to the Commodity Trade Act and CFTC laws.
Given that every one three cryptocurrencies stem from bitcoin, which the Securities and Trade Fee acknowledges as a commodity, their classification raises attention-grabbing regulatory questions. Bloomberg Intelligence ETF analysis analyst James Seyffart posted on X.com, “That is attention-grabbing… surprise if the SEC objects to these being labeled ‘commodities futures’ versus ‘securities futures’. Given their origins from Bitcoin, arguing these as securities can be difficult, particularly after spot #Bitcoin ETF approvals. Coinbase’s choice could be strategic.”
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About Creator
Lawrence Lewitinn is the Managing Editor for North America at The Block. Lewitinn brings in depth expertise as a monetary journalist, with stints at CoinDesk, CNBC, TheStreet, Yahoo Finance, the Observer, and Trendy Consensus. His profession additionally consists of years on Wall Road, the place he traded fastened earnings, currencies, and commodities for Millennium Administration and MQS Capital. Lewitinn is an alumnus of New York College and has earned an MBA from Columbia Enterprise College, together with a Grasp of Worldwide Affairs from Columbia’s College of Worldwide and Public Affairs. He’s a CFA Charterholder.