Coinbase calls on CFTC and SEC to end regulatory tug-of-war over perpetual contracts and forecast ma

Coinbase calls on the CFTC and the SEC to end the regulatory tug-of-war over perpetual futures and forecasting markets.

Coinbase has formally asked U.S. regulators to resolve the jurisdictional overlap that currently hangs over the legal status of perpetual futures and forecasting market products. In an opinion letter filed with the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC), the exchange outlined recommendations aimed at establishing clear, workable rules for these increasingly popular digital asset derivatives.

Coinbase's core proposal

This letter, released on March 10, 2026, is a response to the two institutions 'joint solicitation of public opinions on how to define and regulate perpetual futures contracts. Faryar Shirzad, chief policy officer of Coinbase, summarized the exchange's position on the X platform, focusing on three main recommendations:

Develop a unified regulatory framework to promote consumer choice, market competition and innovation; Classify stock-based perpetual futures products as securities futures subject to the jurisdiction of the SEC; and allow exchanges regulated by the CFTC or the SEC to list stock-related forecasting products as long as they meet the standards of relevant agencies.

Shirzad pointed out that Coinbase already offers perpetual futures and forecast market products, but the current regulatory environment forces the exchange to struggle with conflicting rules. The CFTC and the SEC are locked in a jurisdictional dispute over these products, resulting in a lack of clear guidance for market participants.

Broader regulatory context

The solicitation of public opinion comes amid broader efforts by U.S. regulators to modernize digital asset regulation. Perpetual futures-contracts that have no expiration date and allow traders to bet on price changes-have become mainstream in cryptocurrency trading, especially on offshore platforms. Forecasting markets, which allow users to bet on the outcome of events from elections to economic data releases, are also becoming increasingly popular and have attracted close attention from both agencies.

The CFTC has historically advocated supervision over commodity derivatives, while the SEC has jurisdiction over securities. The rise of products that combine the characteristics of both has created a gray area. For example, stock-based perpetual futures linked to stocks or stock indexes may be regarded as either commodity derivatives or securities futures, depending on the structure of the underlying assets and contracts.

What this means for traders and the industry

For traders, the lack of regulatory clarity creates uncertainty about the legitimacy of their positions and what kind of protection they can enjoy. For exchanges, this complicates compliance and can inhibit innovation, as companies can hesitate to launch new products without being sure which agency will exercise jurisdiction.

Coinbase's letter is noteworthy because it proposes a specific path forward rather than just complaining about the status quo. By proposing to treat stock-based perpetual futures as securities futures, Coinbase recognized the SEC's responsibilities while advocating a more simplified approach that would allow exchanges to operate under a single regulatory agency for specific products.

What happens next

The CFTC and the SEC have not yet said when formal guidance or rulemaking will be issued. However, the public comment period is a critical step in the process, and responses from industries such as Coinbase are likely to affect the final outcome. Market participants should pay close attention to the two institutions 'next moves, as any clarifications could have a significant impact on trading these products in the United States.

Conclusion

Coinbase's letter of opinion highlights the urgent need for regulatory coordination in the digital asset space. By proposing clear divisions of power and advocating consumer choice, the exchange is promoting a framework that reduces uncertainty and promotes innovation. The response from the CFTC and SEC will be closely watched by the entire cryptocurrency industry as the results will set the tone for how these products will be regulated in years to come.

FAQs

Question 1: What are perpetual futures?

Perpetual futures are derivatives contracts that allow traders to bet on the price of the underlying asset with no expiration date. They are widely used in the cryptocurrency market and can be settled in cash or physical delivery, depending on the platform.

Question 2: Why are there disputes between the CFTC and the SEC over these products?

The CFTC regulates commodity derivatives, while the SEC regulates securities. Perpetual futures and forecasting markets may involve assets in either category, creating a gray area in jurisdiction. The two agencies are seeking to clarify who has regulatory authority over these products.

Q3: How might Coinbase's proposal affect traders?

If adopted, Coinbase's recommendations will provide clearer rules for exchanges and traders, reduce legal uncertainty, and potentially lead to more innovative products. However, any new framework will come with compliance requirements, which may affect how these products are offered and traded.