Dogecoin, based on an internet meme, is receiving a mainstream boost as Coinbase Derivatives plan to list futures of the meme coin on April 1. Alongside Dogecoin, the cryptocurrency exchange will enable futures trading with Litecoin and Bitcoin Cash.
Listing of DOGE Futures
The decision came after the exchange had intimated to the Commodity Futures Trading Commission (CFTC) on March 7 in three separate letters its plans to launch cash-settled futures contract products for Dogecoin, Litecoin, and Bitcoin Cash.
Interestingly, the exchange highlighted that it could list future contracts without receiving approval from the CFTC by invoking “self-certification.”
“Coinbase Derivatives [...] hereby submits for self-certification its initial listing of the Dogecoin Futures contract to be offered for trading on the Exchange on or after April 1, 2024,” Coinbase Derivatives noted in its letter to the regulatory agency.
Coinbase Derivatives LLC has filed for 3 new crypto futures, including Dogecoin! #Dogecoin pic.twitter.com/gIu9VldGwM
— BIT BOX (@MeatBunsBeat) March 20, 2024
A Meme Token Becoming Mainstream
Unlike Bitcoin or other top cryptocurrencies, Dogecoin was launched as a joke. The meme token represents the face of a Shiba Inu dog, which was a popular internet meme. Earlier, the meme token received a boost with an endorsement from billionaire Elon Musk.
Justifying its decision to list Dogecoin futures, Coinbase Derivatives noted: “Dogecoin's enduring popularity and the active community support suggest that it has transcended its origins as a meme to become a staple of the cryptocurrency world.”
The cryptocurrency investors reacted quickly to Coinbase Derivatives’ decision to list the futures of the meme token. Following the announcement, the token's price jumped about 20 percent, surpassing $0.15 apiece.
Until now, only Bitcoin and Ether have come under the purview of the CFTC as they are classified as commodities. However, the Securities and Exchange Commission (SEC) recognizes all cryptocurrencies developed from Bitcoin as commodities without naming any specifically. Now, the move by Coinbase Derivatives might trigger an interesting regulatory debate.
This is interesting... wonder if the SEC objects to these being classified 'commodities futures' vs 'securities futures'. These all forked from Bitcoin so "these are securities" claims would be hard to make after spot #Bitcoin ETF approvals. Might be why Coinbase chose them???? https://t.co/PRCxzQEYbi
— James Seyffart (@JSeyff) March 20, 2024
Earlier this year, the SEC approved listing 11 Bitcoin exchange-traded funds, labeling them as securities. However, the regulator is now reluctant to approve the same for Ether.
This article was written by Arnab Shome at www.financemagnates.com.
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