The company’s move to offer futures trading for DOGE, LTC, and BCH automatically qualifies the assets as commodities.
Coinbase, the leading American cryptocurrency exchange, announced plans to roll out futures contracts for Dogecoin (DOGE), the first-ever meme coin that graced the industry.
The company said DOGE has surpassed its meme coin origins due to its “enduring popularity.” Initially launched in December 2013 as a joke, DOGE features an image of a Shiba Inu dog as its logo, contributing to its widespread appeal.
“Dogecoin’s enduring popularity and the active community support suggest that it has transcended its origins as a meme to become a staple of the cryptocurrency world,” the company said.
The token is about to make its way to Coinbase’s derivative platform, trading along other derivatives products such as Nano Bitcoin Futures (BIT).
Coinbase to List Dogecoin Futures on April 1
On March 7, 2024, the exchange sent three letters to the United States Commodity Futures Trading Commission (CFTC) revealing its intention to launch cash-settled futures contract products for DOGE, as well as two other digital assets, Litecoin (LTC) and Bitcoin Cash (BCH), on its derivatives platform.
In the letters addressed to CFTC Secretary Christopher Kirkpatrick, the exchange said the products could be listed on the platform in April even before obtaining regulatory approval from the commodities watchdog by invoking “self-certification.” The estimated time for the listing is April 1, 2024.
“Coinbase Derivatives […] hereby submits for self-certification its initial listing of the Dogecoin Futures contract to be offered for trading on the Exchange on or after April 1, 2024,” reads one of the letters.
Coinbase explained that launching futures contracts using the self-certification method is possible as long as it complies with the Commodity Exchange Act and other CFTC regulations.
DOGE Soars 20% Following the Announcement
The company’s move to offer futures trading for DOGE, LTC, and BCH automatically qualifies the assets as commodities.
Bloomberg senior analyst James Seyffart, who specializes in Exchange-Traded Funds (ETFs), sees Coinbase’s decision to choose these three cryptocurrencies for futures contracts as a strategic move to pressure the US Securities and Exchange Commission (SEC) to provide a clear rulebook for crypto.
He suggested that the move could be strategic, given that the assets are derived directly from Bitcoin (BTC), which the financial regulator already sees as a commodity, not a security.
This is interesting… wonder if the SEC objects to these being classified ‘commodities futures’ vs ‘securities futures’. These all forked from Bitcoin so “these are securities” claims would be hard to make after spot #Bitcoin ETF approvals. Might be why Coinbase chose them🤔 https://t.co/PRCxzQEYbi
— James Seyffart (@JSeyff) March 20, 2024
Meanwhile, following the news of the futures contract, DOGE jumped nearly 20%, reaching $0.1531, according to CoinMarketCap data.
The digital asset boasts over $21 billion with a 24-hour trading volume of over $3 billion. DOGE has also made significant returns for investors over the past few weeks following the recent memecoin rally.