2024-03-21 19:39:02
According to the crypto exchange Coinbase, Dogecoin’s long-standing stable popularity shows that it is no longer a memecoin, but a defining element of the crypto markets. Therefore, now the exchange is planning to launch futures trading products related to the cryptocurrency. Coinbase Derivatives, the exchange’s derivatives business, announced in three separate letters to the U.S. Commodity Futures Trading Commission (CFTC) on March 7 its plan to launch futures contracts for the cryptocurrencies Dogecoin, Litecoin, and Bitcoin Cash on April 1. related.
Coinbase’s decision on DOGE futures products may be a strategic move
According to the letters, Coinbase Derivatives may list these futures on its platform before receiving formal approval from the CFTC. Coinbase explained that it will use the “self-authentication” method to initiate such transactions, as long as they follow the regulatory guidelines set by the agency.. Coinbase justified its announcement regarding Dogecoin by saying that this memecoin goes beyond its origins and is already a mainstay in crypto markets. According to data from CoinMarketCap, the price of DOGE rose nearly 17% on the day of the announcement and is hovering around $0.15 at the time of writing. Many crypto commenters and influencers did not fully understand the move. But other analysts pointed out that the futures listing may have been a calculated move by Coinbase to compel the Securities and Exchange Commission (SEC).
Bloomberg Stock Fund Analyst, James Seyffart in his post on X on March 20th he noted that the announcement might be a kind of strategic move. Its purpose is to force the SEC not to classify as securities any crypto-assets that operate on the same proof-of-work mechanism as Bitcoin. In 2022, Coinbase acquired the CFTC-regulated derivatives exchange FairX to trade crypto derivatives for its customers in the United States. The goal with that step and the current step is to make the derivatives market more accessible to millions of retail customers.
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