Coinbase Seeks Clarity on Perpetual Futures Jurisdiction

Coinbase has urged the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to clarify their jurisdiction over perpetual futures.

The company, the largest U.S. cryptocurrency exchange, submitted a comment letter in response to a joint Request for Comment (RFC) on commodity definition and regulatory compliance.

Coinbase's Chief Policy Officer Payal Shahzad emphasized that 'resolving the complexly intertwined issues of product definitions and overlapping jurisdiction is critical' to attract trading to U.S. markets and provide American consumers with safe investment opportunities.

The company recommends explicitly classifying equity-linked perpetual futures as 'security futures,' allowing CFTC- or SEC-regulated exchanges to list equity-related prediction market products, and promoting a regulatory framework that fosters consumer choice, market competition, and innovation.