The derivatives arm of Coinbase, America’s largest cryptocurrency exchange, announced a delay in the launch of futures contracts for Dogecoin (DOGE).
The launch, originally planned for April 1, 2024, was postponed to April 29, 2024. However, futures trading for Litecoin (LTC) and Bitcoin Cash (BCH) will launch as planned on April 1.
Although Dogecoin began as an internet joke, it has reached a significant market cap and has become one of the top cryptocurrencies by market cap at various points over time. “Dogecoin’s enduring popularity and active community support show that it has transcended its origins as a joke to become a staple of the cryptocurrency world,” Coinbase said in a recent letter.
The nature of DOGE, LTC, and BCH, which are all based on Bitcoin, may be why Coinbase chose them for futures trading. The U.S. Securities and Exchange Commission (SEC) has classified Bitcoin as a commodity, making it difficult to claim these new contracts as securities, especially after the agency’s spot BTC exchange-traded funds approvals.
James Seyffart, a cryptocurrency industry expert, expressed his views on the subject. “Honestly, if the SEC had engaged with the industry to set some rules on this, we wouldn’t have seen moves like this. But at the same time, my job would have been a lot less interesting,” he said.
*This is not investment advice.