Coinbase Seeks CFTC Approval for US Stock Perpetual Futures
Coinbase has formally applied to the U.S. Commodity Futures Trading Commission (CFTC) to list perpetual futures contracts for individual U.S. stocks. This move would allow traders to go long or short on major U.S. equities, including Apple, Tesla, and Nvidia, without needing to own the underlying shares, and trade them around the clock. This marks a significant step for cryptocurrency exchanges in bringing the perpetual futures model to the U.S. stock market.
Regulatory Filing for Perpetual Futures
Coinbase Derivatives submitted its application to the CFTC on Friday, seeking regulatory approval for a derivative structure already prevalent in the crypto market: perpetual futures. Unlike traditional futures contracts with expiration dates, perpetual futures can be held indefinitely, allowing traders to enter and exit positions at any time.
In an official announcement on X, Coinbase stated that this product would build upon its existing U.S. perpetual futures market, extending a trading model previously exclusive to crypto assets to individual U.S. stocks.
Initial Offerings and Target Stocks
According to information obtained by The Wall Street Journal, Coinbase initially plans to offer perpetual futures contracts for approximately 50 to 60 individual stocks. The targeted companies include tech giants such as Apple, Microsoft, Tesla, and Nvidia.
These contracts would be classified by the CFTC as “single-stock futures,” falling under the same regulatory framework as existing perpetual futures for Bitcoin and Ethereum, but with individual stocks as the underlying assets instead of cryptocurrencies.
Previous International Launch and U.
S. Ambitions
This is not Coinbase’s first foray into stock-based perpetual futures. The company launched a similar product in non-U.S. markets in March, supporting contracts for major U.S. stocks and indices like Apple and Nvidia. At that time, it was explicitly stated that U.S. users would not have access.
The current CFTC application aims to bring this already operational model to the U.S. market, contingent on regulatory approval. The application status is currently “pending,” with no timeline provided by the CFTC for a decision.
Dual Regulatory Pathway
Prior to the CFTC filing, Coinbase Derivatives had already submitted a Form 1-N registration statement to the Securities and Exchange Commission (SEC) on September 1st. This filing sought approval to operate as a “national securities exchange” offering security futures products.
This dual-track approach means Coinbase must secure approval from both the CFTC and the SEC to officially offer individual stock perpetual futures to U.S. traders. The overlapping jurisdiction of these two regulators over stock derivatives suggests Coinbase has a strategic understanding of the compliance landscape.
Market Landscape and Competitive Edge
Coinbase is not the first exchange to introduce stock derivatives to a crypto trading platform. In January of last year, Binance launched perpetual futures for Tesla (TSLA), offering leverage of up to 5x. However, that was for a single stock. Coinbase’s current proposal, with a scale of 50-60 stocks and targeting the more strictly regulated U.S. market, represents a more ambitious entry.
The logic behind extending perpetual futures from cryptocurrencies to U.S. stocks is straightforward: crypto traders are accustomed to 24/7 or 24/5 trading without expiration dates. Traditional U.S. stock futures, with their expiry months and settlement processes, present a higher barrier for this user base. Perpetual futures, utilizing funding rates to replace expiration mechanisms, effectively fill this gap.
Future Outlook
Key factors to watch will be the CFTC’s review process, as well as the scale of the initial offerings and the leverage multiples. If approved, this move could signify a major step for crypto exchanges entering the traditional financial derivatives market, potentially paving the way for other U.S. stock trading platforms like Robinhood and Webull to follow suit.
