Coinbase urges clear perpetual contract framework to bring related trading back to the US

On August 26, Coinbase Chief Policy Officer Faryar Shirzad disclosed that Coinbase has submitted comments in response to the joint request from the U.S. Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) regarding the definition of perpetual derivatives and alternative compliance mechanisms. Coinbase recommends classifying equity perpetual contracts as security futures and supports establishing an alternative compliance framework to address issues such as dual registration with the SEC and CFTC, redundant oversight, and fragmented liquidity.

Coinbase stated that the current regulatory definitions are complex and agency jurisdictions overlap, leaving actively traded perpetual derivatives in the U.S. market in a prolonged state of regulatory uncertainty. Clarifying product classification and establishing a unified regulatory mechanism aligned with risk would help bring products currently accessed by U.S. investors through offshore platforms under domestic oversight, while also enhancing U.S. competitiveness in the financial innovation sector.

[TechFlow]