Coinbase suggests clarifying the regulatory framework for perpetual contracts to drive related trading back to the United States.

TechFlow reported on August 26 that Coinbase Chief Policy Officer Faryar Shirzad disclosed Coinbase has submitted comments in response to the joint comment request from the U.S. Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC) regarding the definition of perpetual derivatives and alternative compliance mechanisms. Coinbase recommended classifying equity perpetual contracts as security futures and supports establishing an alternative compliance framework to address issues such as dual registration, duplicate monitoring, and fragmented liquidity between the SEC and CFTC.

Coinbase stated that the current complex regulatory definitions and overlapping institutional jurisdictions have long kept actively traded perpetual derivatives in the U.S. market in a state of regulatory uncertainty. If product classifications are clarified and a unified regulatory mechanism aligned with risk is established, it would help bring related products currently accessed by U.S. investors through overseas platforms under domestic regulation, while enhancing U.S. competitiveness in the field of financial innovation.