Key Highlights
- Coinbase submitted a notice registration document with the SEC to introduce equity perpetual contracts on its exchange.
- Faryar Shirzad, Chief Policy Officer, revealed the submission on X, describing it as “a regulated pathway for U.S. investors.”
- Following SEC clearance, Coinbase must obtain CFTC authorization before launching the product.
- Perpetual contracts are derivative instruments with no settlement date, allowing speculation on asset prices without physical ownership.
- Hyperliquid, a competing perpetuals exchange, is reportedly working toward U.S. market entry through a partnership with Kraken’s parent entity.
Earlier this week, Coinbase submitted a notice registration document to the U.S. Securities and Exchange Commission, requesting authorization to offer equity perpetual contracts through its trading platform.
On Thursday, Chief Policy Officer Faryar Shirzad acknowledged the submission via a post on X. “Equity perps have proven demand internationally, and we’re excited at the prospect of a regulated pathway for U.S. investors,” he stated.
This development represents a significant advancement in Coinbase’s expansion into derivative offerings for American customers.
Perpetual futures contracts, frequently referred to as “perps,” are derivative instruments that lack an expiration date. These products enable speculators to take positions on asset price fluctuations without purchasing the underlying securities.
In contrast to conventional futures contracts, perpetuals eliminate the requirement to roll positions forward. This characteristic has made them attractive to frequent traders seeking to maintain positions for extended periods.
A substantial portion of the perpetuals trading ecosystem currently operates through offshore platforms that exist beyond U.S. regulatory jurisdiction.
Coinbase introduced perpetual futures trading in March, although access was restricted to international users. The initial offering encompassed contracts for prominent equities such as Apple, Microsoft, NVIDIA, and Amazon.
Multiple Regulatory Hurdles Remain
Obtaining SEC authorization represents just one phase of the approval process. Shirzad emphasized that CFTC clearance would subsequently be necessary before Coinbase can offer equity perpetuals to American traders.
Coinbase has previously navigated CFTC approval procedures. In May, the CFTC authorized both Coinbase and prediction markets operator KalshiEX to introduce bitcoin perpetual futures contracts for U.S. customers.
The subsequent month, the CFTC issued a request for public commentary regarding crude oil perpetual contracts and continuous trading capabilities, demonstrating increased regulatory attention toward this market segment.
Kalshi has similarly submitted an application for CFTC approval to offer equity index perpetuals, positioning itself as a competitor to traditional exchanges.
Hyperliquid Pursues U.S. Market Entry
The expanding movement toward regulated perpetual contracts has drawn attention to Hyperliquid, an exchange that gained traction among cryptocurrency derivatives participants.
President Donald Trump referenced Hyperliquid during a White House appearance last month, indicating that CFTC Chair Michael Selig was facilitating the platform’s entry into the U.S. market in a “fully compliant and legal fashion.”
Bloomberg disclosed earlier this week that Hyperliquid Labs is negotiating an onshore arrangement with Payward, the corporate entity behind cryptocurrency exchange Kraken.
Earlier CFTC authorization of cryptocurrency perpetual products had initially pressured exchange-related equities during the year’s first half, though these securities have subsequently rebounded from earlier declines.
Coinbase’s COIN stock has participated in this recovery, benefiting from a broader cryptocurrency market rally. The aggregate crypto market valuation recently climbed to $2.82 trillion.
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