Coinbase has formally asked the CFTC and SEC to sort out who regulates perpetual futures and prediction markets. The exchange made public a comment letter on March 10, 2026, responding to a joint request from the two agencies for public input.
The current setup forces exchanges to deal with conflicting rules. Perpetual futures contracts, which have no expiration date, are popular in crypto trading. Prediction markets let users bet on events like elections or economic data. Both products sit in a gray area between commodity derivatives and securities.
Coinbase’s chief policy officer, Faryar Shirzad, summarized the exchange’s position on X, highlighting three main recommendations. The core message: regulators need clear, predictable rules.
Why agencies are at odds
The CFTC traditionally oversees commodity derivatives. The SEC handles securities. When a product mixes both traits, the lines blur. Equity-based perpetual futures, for example, could be treated as either commodity derivatives or security futures depending on the underlying asset.
That ambiguity creates problems on both sides. Traders don’t know what protections apply. Exchanges hesitate to launch products because they don’t know which agency will step in later.
Coinbase’s proposed path
Coinbase argues that equity-based perpetual futures should be treated as security futures. That would acknowledge the SEC’s role while giving exchanges a single regulator for a given product. It’s a practical suggestion, not just a complaint about the status quo.
The letter is notable because it offers a concrete direction. Coinbase already offers both perpetual futures and prediction markets. The company says the current environment makes compliance harder than it needs to be.
What could happen next
The CFTC and SEC haven’t said when they will issue formal guidance. The public comment period is still open, and industry responses will likely shape the final rules. Any clarification could have real consequences for how these products are traded in the U.S.
There’s no guarantee the agencies will follow Coinbase’s suggestions. But the letter adds pressure to resolve a long-running dispute. For now, exchanges and traders are left waiting.
The bigger question is whether the two agencies can agree on a shared set of rules. That won’t be easy. The digital asset space keeps evolving, and regulators are still catching up.
Coinbase’s letter is one step in a longer process. It doesn’t solve the problem overnight. But it gives regulators a concrete starting point. The crypto industry will be watching closely.
