Coinbase filed notice with the SEC to launch single-share perpetual contracts in the United States

TLDR:

Coinbase filed notification registration documents with the U.S. Securities and Exchange Commission this week regarding its derivatives exchange and brokerage business. These notice registrations open the way for joint supervision by the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission. Coinbase has launched perpetual contracts for Apple, Tesla, Nvidia and other stocks in overseas markets. Currently, trading dates, leverage limits and a list of supporting stocks for the U.S. market have not yet been announced. [TAG

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TLDR:

Coinbase filed notification registration documents with the SEC this week regarding its derivatives exchange and brokerage businesses. The registration of these notices opens the way for joint regulation by the Securities and Exchange Commission and the Commodity Futures Trading Commission. Coinbase has launched perpetual contracts for Apple, Tesla, Nvidia and other stocks in overseas markets. At this time, trading dates, leverage limits and a list of supporting stocks for the US market have not been announced.

Coinbase submits notification registration documents with the U.S. Securities and Exchange Commission

Coinbase is working to introduce a single stock perpetual contract to the U.S. market and filed relevant notification registration documents with the U.S. Securities and Exchange Commission this week. The documents cover its derivatives exchange and brokerage business units. The move is an early step in providing investors with leveraged individual stock exposure that traders can obtain without actually holding the underlying stock. Coinbase said it plans to work closely with the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission to bring more financial products to the U.S. domestic market.

Coinbase Derivatives has filed Form 1-N with the U.S. Securities and Exchange Commission to cover its exchange operations; Coinbase Financial Markets has filed Form BD-N separately for its brokerage business. Together, the two documents build a regulatory path involving the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission. The company described this coordinated regulatory initiative as a key step in improving the competitiveness of the digital asset market. In a public statement, Coinbase said it is working to introduce a single equity perpetual contract to the United States and has filed relevant notification registration documents for its derivatives exchanges and brokers this week. The company added that it would "work closely with the Securities and Exchange Commission and the Commodity Futures Trading Commission" to promote the launch of more important financial products in the United States.

Faryar Shirzad, chief policy officer of Coinbase, said the submission is the first step in providing perpetual equity contracts to the United States. He said that a single stock perpetual contract has shown strong demand in the international market. Shirzad also noted that Coinbase is "excited about opening up a regulated path for U.S. investors." He mentioned that the next milestone will be obtaining product approval from the Commodity Futures Trading Commission. These documents establish a regulatory framework but do not guarantee that the product will be launched immediately. Coinbase has not announced a transaction launch date or contract specifications. Leverage limits and a list of backed stocks have not yet been disclosed. Traders and market observers may need to wait for further guidance to understand when the product will be available.

International perpetual contracts provide early clues

Coinbase currently offers single stock perpetual contracts to qualified customers outside the United States. Its existing product line includes shares of Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta and Tesla. These overseas contracts allow continuous trading, have no fixed maturity date, and adopt the perpetual futures funding rate mechanism common in the cryptocurrency market. Traders receive price exposure to the underlying stock rather than shareholder equity such as voting rights or dividends. This structure is similar to the cryptocurrency perpetual swap contracts that exist on many exchanges. Applying this model to individual stocks could attract traders seeking leveraged stock exposure. After receiving regulatory approval in the United States, this model will expand beyond digital assets.

Coinbase views coordination between the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission as a necessary condition to maintain U.S. competitiveness. The company said investors are already eager to gain trading rights for these products. Whether approval passes quickly may depend on how regulators respond to these joint submissions. For now, U.S. traders will continue to monitor the development of the situation.