Coinbase to Launch Futures Trading on Dogecoin, Litecoin and Bitcoin Cash
The American cryptocurrency exchange Coinbase has sent three letters to the Commodity Futures Trading Commission (CFTC), in which it announced plans to launch futures for Dogecoin, Litecoin and Bitcoin Cash from April 1.
Coinbase representatives explained the choice of Dogecoin by "overcoming the limits of memcoin" and the growing popularity of this cryptocurrency. That is, according to the management of the exchange, DOGE has long gone beyond the "joke cryptocurrency" and has become one of the fundamental elements of the crypto industry.
Futures for Dogecoin, Litecoin and Bitcoin Cash will be calculated in fiat currency, and their duration will be a month. At the same time, to launch futures products, Coinbase will conduct a "self-certification" under rule 40.2(a) under the guidance of the CFTC. This procedure allows the independent withdrawal of products without direct approval of the regulator if these products meet the existing requirements.
The move, according to some market participants, is ambiguous. However, according to other analysts, including Bloomberg employee James Seyffart, this is a smart and calculated step. According to him, the launch of such futures contracts will be one of the reasons to withdraw all cryptocurrencies based on the Proof-of-Work algorithm from the definition of a "security" by the U.S. Securities and Exchange Commission (SEC) by analogy with bitcoin.
"I wonder if the SEC will argue about the status of products such as "securities futures" or agree to "commodity futures." The networks of these cryptocurrencies are based on the Bitcoin code, so it will be difficult to declare them securities, especially after the approval of spot ETFs on BTC," Seyffart noted.
Source: https://bits.media/coinbase-zapustit-torgovlyu-fyuchersami-na-dogecoin-litecoin-i-bitcoin-cash/
