Coinbase submits three recommendations to US CFTC and SEC on perpetual contracts and prediction market regulation

Odaily News, Faryar Shirzad posted on X platform that Coinbase has submitted a response to the joint request for comments from the US CFTC and SEC regarding the definition and compliance framework for perpetual contract products. Coinbase put forward three recommendations: establishing a flexible compliance framework to promote customer choice, competition, and innovation; classifying equity perpetual derivatives under securities futures regulation; and allowing exchanges regulated by either agency to list securities-related event contracts. Coinbase stated that perpetual derivatives and prediction markets provide investors with new investment and risk management tools, but the complex jurisdictional boundaries between the US CFTC and SEC impose inconsistent requirements on economically relevant products, hindering market participants' ability to offer and integrate products through a single US-regulated technology stack.