Coinbase Submits Three Proposals to CFTC and SEC on Perpetual Contracts and Prediction Market Regulation

August 26 news, Coinbase Chief Policy Officer Faryar Shirzad posted on platform X that Coinbase has submitted responses to the joint request for comment from the CFTC and SEC regarding the definition and compliance framework of perpetual contract products. Coinbase proposed three recommendations: establish a flexible compliance framework to promote customer choice, competition, and innovation; classify equity perpetual derivatives under securities futures regulation; allow exchanges regulated by either regulator to list securities-related event contracts. Coinbase stated that perpetual derivatives and prediction markets provide investors with new investment and risk management tools, but the complex jurisdictional boundaries between the two major regulators impose inconsistent requirements on economically relevant products, hindering market participants' ability to offer and integrate products through a single U.S. regulated technology stack.