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

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

Coinbase has formally asked U.S. regulators to resolve the jurisdictional overlap that currently clouds the legal status of perpetual futures and prediction market products. In a comment letter submitted to 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 key proposals

The letter, made public on March 10, 2026, responds to a joint request from the two agencies for public input on how to define and oversee perpetual futures contracts. Coinbase’s chief policy officer, Faryar Shirzad, summarized the exchange’s position on X, highlighting three main recommendations:

• Develop a unified regulatory framework that promotes consumer choice, market competition, and innovation.
• Classify equity-based perpetual futures products as security futures, subject to SEC jurisdiction.
• Allow exchanges regulated by either the CFTC or the SEC to list equity-related prediction products, as long as they meet the relevant agency’s standards.