Coinbase says ‘jurisdictional overlap’ is blocking U.S. equity perps – Here’s what it means

Coinbase exchange has requested the U.S CFTC and SEC to offer clear and harmonized regulations for equity perpetual futures (perps). 

Equity perps, or RWAs (real-world asset tokenization), allow traders and investors to take leveraged positions on tokenized stocks and ETFs. Unlike Option contracts, analysts view them as a better way of hedging, especially for crypto natives and less sophisticated investors. 

Collectively, RWAs and commodity perps (those tracking gold, oil, etc) have exploded offshore. 

Although the CFTC recently approved crypto perps for Kalshi and Coinbase, there is no similar framework for equity perps. In fact, the regulators recently called for public input on how to treat the products. 

In response, Coinbase asked for equity perps to be treated as ‘security futures.’ Additionally, the exchange wants any entity registered with either the SEC or CFTC to be allowed to list equity perps without applying for extra licenses. 

For his part, Coinbase’s Chief Policy Officer, Faryar Shirzad, said, 

It’s crucial that convoluted definitions and jurisdictional overlap be addressed so the US can onshore and regulate activity, safely open up opportunity to US consumers.

Coinbase joins Hyperliquid for equity perps clarity push