The Commodities and Futures Trading Commission (CFTC) has approved Coinbase Derivatives Exchange’s application to list futures contracts tied to Dogecoin (DOGE), Bitcoin Cash (BCH), and Litecoin (LTC).
In an announcement made on March 7, the CFTC disclosed that the listings for these three tokens will go live and begin trading on or after April 1, 2024. Following this news, DOGE saw a price gain of 16.1%, BCH went up by 11.4%, and LTC increased by 7.8%. The overall crypto market also experienced a surge, rising by 6.2%.
Coinbase Derivatives Exchange currently offers futures contracts for Bitcoin (BTC), Ethereum (ETH), and crude oil for both institutional and retail investors.
This move by Coinbase to list futures contracts for DOGE, BCH, and LTC could have significant implications on their regulatory classification. Analysts speculate that since these three tokens were originally based on Bitcoin’s code, which is considered a commodity by most regulators, it could force the SEC to further clarify the distinction between securities and commodities.
Experts believe that Coinbase’s approval for these futures listings could pave the way for more exchanges to follow suit, ultimately making way for spot crypto ETFs in the future. With a change in US leadership, there may be an influx of applications for similar offerings.
The SEC’s history with approving spot Bitcoin ETFs after a legal battle with Grayscale suggests that futures listings like these could be a necessary step for the cryptocurrency market to evolve further.
Overall, the approval by the CFTC for Coinbase to list Dogecoin futures signals a potential shift in the regulatory landscape for digital assets.
