Coinbase Seeks Clarity on Perpetual Futures and Prediction Markets

Coinbase has called on U.S. regulators to resolve the jurisdictional overlap that clouds the legal status of perpetual futures and prediction market products.

The exchange submitted a comment letter to the Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC), outlining recommendations aimed at establishing clear, workable rules for these digital asset derivatives.

Coinbase's chief policy officer, Faryar Shirzad, emphasized that the exchange already offers both perpetual futures and prediction market products, but the current regulatory environment forces it to navigate conflicting rules.

The CFTC has historically claimed oversight of commodities-based derivatives, while the SEC has jurisdiction over securities. The rise of products that blend characteristics of both has created a gray area, leaving traders uncertain about the legality of their positions and the protections available to them.