Coinbase to Launch DOGE, LTC, and BCH futures

The exchange has filed a notice with the US Commodity Futures Trading Commission

21.03.2024 - 12:25

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3 min

What’s new? US crypto exchange Coinbase’s derivatives trading platform will launch cash-settled futures contracts for Dogecoin (DOGE), Litecoin (LTC), and Bitcoin Cash (BCH) on April 1. It has filed the relevant notices with the Commodity Futures Trading Commission (CFTC) on a form that allows new offerings to be launched without the approval of officials, as long as they are guaranteed to comply with the Commodity Exchange Act and CFTC rules.

Applications for DOGE, LTC, and BCH

What else is known? All three of Coinbase Derivatives’ proposed crypto derivatives are derived from bitcoin, which the CFTC previously recognized as a commodity. However, industry experts believe that the launch of the futures may raise some questions regarding the regulation and classification of these tokens.

Bloomberg analyst James Seyffart wonders whether the Securities and Exchange Commission (SEC), with which Coinbase is currently in litigation, would object to the fact that the exchange’s proposed products would be classified as commodity futures rather than securities.

Источник: Twitter.com

However, he believes that the SEC will have a hard time making a claim after it approved spot bitcoin exchange-traded funds (ETFs) and called BTC a commodity (rather than a security), given that DOGE, LTC, and BCH also use its technology at their core, and the latter is a fork of the Bitcoin network. Seyffart also suggested that Coinbase chose these assets for this reason.

CFTC chair says risks of launching spot BTC ETFs in the absence of crypto regulation

According to Rostin Behnam, officials still have no mechanisms in place to ensure customer protection

Coinbase previously held a meeting with the SEC over investment firm Grayscale’s application to launch an Ethereum-based spot exchange-traded fund (ETF), where it urged officials to classify ETH ETF shares as exchange-traded commodity shares. So far, the SEC has not allowed any spot ETH ETF to enter the market.

Amid the exchange announcement, all three altcoins showed gains. DOGE, LTC, and BCH added 13%, 5,2%, and 4,7% respectively over the day.

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