Cryptocurrency exchange Coinbase believes that the “enduring popularity” of Dogecoin ( Doge ) shows it has transcended its meme origins to become a staple in the crypto industry — and now is planning to launch futures trading products for cryptocurrencies.
In three separate letters to the US Commodity Futures Trading Commission (CFTC) on March 7, Coinbase Derivatives announced plans to launch cash-settled Futures Contract products for Dogecoin., Litecoin ( LTC ) and Bitcoin Cash ( BCH ) as soon as April 1.
Notably, the letters say that Coinbase Dervitiatives may list Futures Contract on its platform before receiving any formal approval from the CFTC.
Coinbase explained that it will use a “self-certification” method to launch Futures Contract, as long as they comply with the regulatory guidelines set out by the agency.
“Coinbase Derivative […] hereby applies to self-certify an initial listing of Dogecoin Futures Contract to be offered for trading on the Exchange on or after April 1, 2024, ” reads the letter regarding the Dogecoin futures product.
Coinbase justified its Dogecoin listing announcement by claiming that the memecoin has transcended its origins as a joke and has risen to become a foundational element of the cryptocurrency industry.
“ Dogecoin 's enduring popularity and active community support show that it has transcended its origins as a meme to become a major part of the crypto world.”
Dogecoin price is currently up 17% on the day and is trading at $0.15 at the time of writing, according to data from CoinMarketCap. While some market commentators on social media seemed confused by the move Today, analysts suggest that the move to list Futures Contract may be a calculated move by Coinbase to force the Securities and Exchange Commission's hand.
In a March 20 post to X, Bloomberg ETF analyst James Seyffart noted that the filings could be a strategic play to force the SEC to classify any Cryptoasset based on Proof-of-work consensus mechanism similar to Bitcoin. a “security.”
“Wondering if the SEC would object to the classification of ' Futures Contract ' and 'Equity Futures Contract '," Seyffart wrote. “These [are all based on] Bitcoin so the claims ' This is a security' that will be difficult to launch after approval of a Bitcoin ETF in place."
