Coinbase and Hyperliquid Push Regulators to Clear Up Equity Perp Confusion

Coinbase is joining forces with Hyperliquid to push for clarity on equity perpetual futures (perps) in the US. According to Coinbase, 'jurisdictional overlap' between regulatory bodies is blocking access to these products. Equity perps allow traders and investors to take leveraged positions on tokenized stocks and ETFs.

While regulators have approved crypto perps for Kalshi and Coinbase, there is no similar framework for equity perps. In fact, the CFTC recently called for public input on how to treat these products.

Coinbase has requested that the SEC and CFTC treat equity perps as 'security futures.' This would allow any entity registered with either regulatory body to list equity perps without applying for extra licenses.

According to Faryar Shirzad, Coinbase's Chief Policy Officer, it is crucial to address convoluted definitions and jurisdictional overlap so that the US can onshore and regulate activity, safely opening up opportunity to US consumers.