Crypto exchange Coinbase plans to introduce futures trading for Dogecoin (DOGE).
This decision underscores DOGE's evolution from a meme to a key player in the crypto, reflecting its acceptance and the community's support.
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The crypto exchange, through Coinbase Derivatives, has revealed its intention to offer cash-settled futures contracts for Dogecoin alongside Bitcoin Cash (BCH) and Litecoin (LTC) as of April 1.
Coinbase has chosen the self-certification route, which allows it to proceed with the listings provided that the products comply with the regulatory standards set forth by the Commodities Futures Trading Commission (CFTC).
According to the listing, the rationale behind incorporating Dogecoin into its futures trading portfolio is backed by the cryptocurrency's sustained appeal and the vibrant community that supports it:
Dogecoin's enduring popularity and the active community support suggest that it has transcended its origins as a meme to become a staple of the cryptocurrency world.
This development has sparked various reactions across the industry, with some analysts viewing it as a strategic maneuver by Coinbase. James Seyffart, a Bloomberg ETF analyst, speculated that the move might be aimed at challenging the Securities and Exchange Commission's (SEC) stance on crypto classification.
By introducing futures contracts for assets based on the Bitcoin code, Coinbase could be positioning these assets more firmly as commodities, thereby complicating any attempts by the SEC to label them as securities.
After the announcement, Dogecoin's value experienced a 17% uptick, trading at $0.15 at the time of writing.
Dogecoin was also recently discussed in a report by Franklin Templeton, which highlighted its role as the pioneer and leading memecoin that impacted the spawn of similar tokens.
This initiative not only highlights Dogecoin's legitimacy and potential within the financial markets but also signals a shift towards more nuanced regulatory engagement in the crypto space.
